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You expect a share of a companys stock to sell for $80 a year from now, with a dividend payment of $5 per share. If
You expect a share of a companys stock to sell for $80 a year from now, with a dividend payment of $5 per share. If the rate of return on safe assets is 3%, and your risk premium is 5%, how much are you willing to pay for one share of the companys stock today?
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