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The market risk premium is 8 % and the risk - free rate is 3 % . The beta of stock XYZ is 1 and

The market risk premium is 8% and the risk-free rate is 3%. The beta of stock XYZ is 1 and the company is expected to pay a $0.50 dividend indefinitely. If the market risk premium suddenly decreases to 7% what is the impact on the price of XYZ?

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