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You are thinking about investing in stock in a company who paid a dividend of $10 this year and whose dividends you expect to grow
You are thinking about investing in stock in a company who paid a dividend of
$10
this year and whose dividends you expect to grow at 3 percent a year. The risk-free rate is 4 percent and you require a risk premium of 2 percent. If the price of the stock in the market is
$200
a share, should you buy it?\ (Click to select)
vv
, using the dividend-discount model, you are willing to pay up to (Click to select)
vv
per share.
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