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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 $4.90 and
You are considering buying common stock in Grow On, Inc. You have projected that the next dividend the company will pay will equal $4.90 and that dividends will grow at a rate of 5.0% per year thereafter. The firm's beta is 2.05, the risk-free rate is 5.6%, and the market return is 14.0%. What is the most you should pay for the stock now?
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