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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 $5.10 and
You are considering buying common stock in Grow On, Inc. You have projected that the next dividend the company will pay will equal $5.10 and that dividends will grow at a rate of 7.0% per year thereafter. The firm's beta is 0.55, the risk-free rate is 4.1%, and the market return is 14.1%. What is the most you should pay for the stock now?
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