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The current risk-free rate is 3 percent and the market risk premium is 4 percent. You are trying to value ABC company and it has

The current risk-free rate is 3 percent and the market risk premium is 4 percent. You are trying to value ABC company and it has an equity beta of 0.8. The company earned $1.50 per share in the year that just ended. You expect the company's earnings to grow 5 percent per year. The company has an ROE of 10 percent.

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