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  • Oct 17, 2013, 05:43 AM
    jfm12
    Financial economics question
    Suppose a company’s current dividend of $1.50 per share is expected to grow at a constant 0.05 rate into the indefinite future. In capital markets the market risk premium is 0.08 and the risk-free rate is 0.02. If the stable beta of the company’s stock is 0.8, what is the estimated current stock price?

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