1.) The annual risk-free rate of return is 2 percent and the investor believe that...
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1.) The annual risk-free rate of return is 2 percent and the investor believe that the market will rise annually at 7 percent. If a stock has a beta coefficient of 1.5 and its current dividend is $1, what should be the value of the stock of its earnings and dividends are growing annually at 4 percent?
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