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The risk-free rate of return is 5%; the required rate of return on the market is 8%; and Upton Companys stock has a beta coefficient
The risk-free rate of return is 5%; the required rate of return on the market is 8%; and Upton Companys stock has a beta coefficient of 1.5. If the dividend expected during the coming year, D1, is $2.25, and if g=a constant 5%, at what price should Uptons stock sell (Assume Equilibrium holds)
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