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3. Fee Founders has perpetual preferred stock outstanding that sells for $173 a share and pays a dividend of $5 at the end of each
3. Fee Founders has perpetual preferred stock outstanding that sells for $173 a share and pays a dividend of $5 at the end of each year. What is the required rate of return? (1 point) 1 Page 4. You are considering an investment in Keller Corp's stock, which is expected to pay a dividend of $2 a share at the end of the year and has a beta of 12.20. The risk-free rate is 16.90%, and the market risk premium is 6%. Keller currently sells for $138 a share, and its dividend is expected to grow at some constant rate g. Assuming the market is in equilibrium, what does the market believe will be the stock price at the end of 3 years? (1 point)
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