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You have the following information for stock X: Assume market equilibrium. Do = $4 b= 1.5 RM = 10% Rf = 2% Year 1 2

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You have the following information for stock X: Assume market equilibrium. Do = $4 b= 1.5 RM = 10% Rf = 2% Year 1 2 3 $132.16 Ob. $127.81 c. $131.75 Od. $130.23 $124.12 $123.84 g. $125.33 h. $124.88 4 5 What will be the expected stock price one year from today (P)? a. Dividend growth rate 50% e 40% 30% 20% 5%

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