What is the fundamental price of the stock what is the


The XYZ company is expected to pay a dividend of $1.00 per share at the end of the year, and that dividend is expected to grow at a constant rate of 2.00% per year in the future. The company's beta is 1.2, the market risk premium is 5.0%, and the nominal risk-free rate is 2.00%.

1) What is the fundamental price of the stock?

2) What is the stock's expected return?

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