A share of common stock has just paid a dividend of 200 the


A share of common stock has just paid a dividend of $2.00. The market return is 15% and the beta is 2. The three month T-bill rate is 5%. The expected long-run growth rate for this stock is 15 percent.

4a. What is the required return for the stock?
4b. What is the price of the stock?

 

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Finance Basics: A share of common stock has just paid a dividend of 200 the
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