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You are considering buying common stock in Grow On, Inc. The firm yesterday paid a dividend of $3.10. You have projected that dividends will grow
You are considering buying common stock in Grow On, Inc. The firm yesterday paid a dividend of $3.10. You have projected that dividends will grow at a rate of 5.0% per year indefinitely. The firm's beta is 1.60, the risk-free rate is 5.7%, and the market return is 14.3%. What is the most you should pay for the stock now?
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