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You are considering buying common stock in Grow On, Inc. You have projected that the next dividend the company will pay will equal $4.00 and
You are considering buying common stock in Grow On, Inc. You have projected that the next dividend the company will pay will equal $4.00 and that dividends will grow at a rate of 7.0% per year thereafter. The firm's beta is 1.75, the risk-free rate is 7.5%, and the market return is 11.3%. What is the most you should pay for the stock now? $30.25 $59.86 $28.27 $55.94 $61.12
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