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The beta of Jungle.Com Corporation is 2. The expected rate of return on market is 16% and the T-bill rate is 6%. What should be
The beta of Jungle.Com Corporation is 2. The expected rate of return on market is 16% and the T-bill rate is 6%. What should be the expected rate of return on Jungle.Com stock? Suppose the dividends per share of Jungle.Com is expected to be 0 over the next 4 years. In year five it is expected to pay $1.00 per share and after that dividends per share are expected to grow at 10% per year for many years. What should be the stock price of Jungle.Com?
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