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Your next assignment is to assume that your firm has a risk-free rate of 6 percent and a market risk premium also of 6 percent.
Your next assignment is to assume that your firm has a risk-free rate of 6 percent and a market risk premium also of 6 percent. Your firms beta is 1.5 and the last time your firm paid a dividend was $2.00 per share. please show work a. What would your firms stock value be if the dividend was expected to grow at a constant:
*-5 percent
*0 percent
*5 percent
*10 percent
b. What would your firms stock value be if the growth rate is 10 percent, but the firms beta falls to:
* 1.0
* 0.5
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