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The market price of company is $75. Its expected rate of return is 12%. The risk-free rate is 2% and the expected return on the

The market price of company is $75. Its expected rate of return is 12%. The risk-free rate is 2% and the expected return on the market is 10%.

What will be the market price of company if its correlation with the market increases by 50% and all other variables are unchanged?

The stock is expected to pay a constant dividend in perpetuity.

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