Suppose a firm pays a dividend on its stock at the end of


Suppose a firm pays a dividend on it's stock at the end of every period, the stock beta is 1.5, the firm just paid a dividend in the amount of $3.1, and dividends are expected to grow two percent every period forever. If the expected return on the market is 8.7-percent and the risk free rate is 3.1-percent, calculate the stock price based on the CAPM and constant growth stock valuation model.

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Financial Management: Suppose a firm pays a dividend on its stock at the end of
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