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The Island Hotel Company, Inc. just paid a dividend of $2.95 per share, and that dividend is expected to grow at a constant rate of

The Island Hotel Company, Inc. just paid a dividend of $2.95 per share, and that dividend

is expected to grow at a constant rate of 4.50% per year in the future. The company's

beta is 2.75, the market risk premium is 6.50%, and the risk-free rate is 2.50%. Using

CAPM, at what price should the company's stock sell?

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