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#19 The risk-free rate is 1.25% and the market risk premium is 5.56%. A stock with...

Question:

#19 The risk-free rate is 1.25% and the market risk premium is 5.56%. A stock with a ß of 1.07 just paid a dividend of $1.71.

#19 The risk-free rate is 1.25% and the market risk premium is 5.56%. A stock with a ß of 1.07 just paid a dividend of $1.71. The dividend is expected to grow at 22.98% for three years and then grow at 3.33% forever. What is the value of the stock? Submit Answer format: Currency: Round to: 2 decimal places.

Answers

Ке Rf+beta*(Rm-Rf) = 0.0125+1.07*(0.0556) 0.071992 7.199% 3.33% 7.199% 1.71*(1+0.2298) 1.71*(1+0.2298)^2 1.71*(1+0.2298)^3 1.

.

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