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Expected to pay a constant dividend in perpetuity

Problem:

The market price of a security is $40.00. Its expected rate of return is 13%. The risk free rate is 7%, and the market risk premium is 8%. What will the market price of the security be if its beta doubles (and all other variables remain unchanged)? Assuming the stock is expected to pay a constant dividend in perpetuity.

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Accounting Basics: Expected to pay a constant dividend in perpetuity

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Accounting Basics: Expected to pay a constant dividend in perpetuity

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