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The risk free return is 7 percent and the return on market portfolio is 14 percent. Stock Bs beta is 1.3; its dividends and earnings
The risk free return is 7 percent and the return on market portfolio is 14 percent. Stock Bs beta is 1.3; its dividends and earnings are expected to grow at the constant rate of 6 percent. If the previous dividend per share of stock B was Rs. 2.50, what should be the intrinsic value per share of stock B?
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