Suppose a firmrsquos stock beta is 15 the expected dividend


Suppose a firm’s stock beta is 1.5, the expected dividend next period is $3.5, and dividends are expected to grow two percent every period forever. If the expected return on the market is 11.5-percent and the risk free rate is 2.6-percent, calculate the stock price based on the CAPM and constant growth stock valuation model.

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Financial Management: Suppose a firmrsquos stock beta is 15 the expected dividend
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