The stocks beta is 12 the risk-free rate is 4 and the


A stock is expected to pay a 2.50 dividend at the end of the year (D1 = $2.50). The dividend is expected to grow at a constant rate of 6% a year. The stock's beta is 1.2, the risk-free rate is 4%, and the market risk premium is 5%. What is the expected stock price 8 years from today?

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Financial Management: The stocks beta is 12 the risk-free rate is 4 and the
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