What is the fundamental price of the stock what is the


The XYZ company is expected to pay a dividend of $5.00 per share at the end of the year, and that dividend is expected to grow at a constant rate of 3.00% per year in the future. The company’s beta is 1.5, the market risk premium is 5.0%, and real risk-free rate and inflation rate are both is 1.50%.

(1) What is the fundamental price of the stock?

(2) What is the stock's expected return?

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