Suppose that the risk free rate is 5 the expected market


Suppose that the risk free rate is 5%, the expected market return is 10%, the beta of firm XYZ is 2, the current dividend that XYZ has just paid is 1 and dividends are expected to grow at a rate of 10% per year. What should be the price of the firm's stock according to GGM?

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Finance Basics: Suppose that the risk free rate is 5 the expected market
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