Cache creek manufacturing company is expected to pay a


Cache Creek Manufacturing Company is expected to pay a dividend of $3 in the upcoming year. Dividends are expected to grow at the rate of 6% per year. The risk-free rate of return is 4%, and the expected return on the market portfolio is 10%. The stock is trading in the market today at $45. Using the constant-growth DDM and the CAPM, what is the beta of the stock?

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Financial Management: Cache creek manufacturing company is expected to pay a
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