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You are considering buying common stock in Grow On, Inc. You have project that the next dividend the company will pay will equal $8.00 and
You are considering buying common stock in Grow On, Inc. You have project that the next dividend the company will pay will equal $8.00 and that dividends will grow at a rate of 16.0% per year thereafter. The firm's beta is 2.70, the risk-free rate is 5.6%, and the market return is 10.9%. What is the most you should pay for the stock now?
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