The risk-free rate of return is 8 percent; the expected rate of return on the...
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| The risk-free rate of return is 8 percent; the expected rate of return on the market is 12 percent. Stock X has a beta coefficient of 1.3, an earnings and dividend-growth rate of 7 percent, and a current dividend of $2.40. If the stock is selling for $35, to decide if you think it is a good investment, what is your rate of return, and what is your required stock price? |
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