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XYZ's dividend for the next year is forecast at $3 per share. Assume that XYZ's beta is 1.4, that the expected market premium is 7%,
XYZ's dividend for the next year is forecast at $3 per share. Assume that XYZ's beta is 1.4, that the expected market premium is 7%, and that risk free rates are are at 2.5%. Further assume that XYZ will have 10% growth for 2 years followed by 5% growth forever. What should be the price for XYZ's stock?
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