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The stock of the Belta Corporation has a beta of 0.95. The stock recently paid an annual dividend of $0.45, and dividends are expected to
The stock of the Belta Corporation has a beta of 0.95. The stock recently paid an annual dividend of $0.45, and dividends are expected to grow at a rate of 4% indefinitely. The equity premium has averaged 5% in recent years, and it is expected to remain at this level for the foreseeable future. The relevant risk-free rate is 3%. what is the maximum price you should pay for a share of the Belta Corporation, according to CAPM? A $12.08 B $11.61 C $17.55 D $12.48
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