Assume the risk-free rate is 5 and the market risk premium


Assume the risk-free rate is 5% and the market risk premium is 10%. Co. A has a beta of 1.2 and a current stock price (Po) of $20.00 and an expected growth rate of 5%. What must the current dividend (Do) be?

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Financial Management: Assume the risk-free rate is 5 and the market risk premium
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