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The stock has a beta of 14 the risk free rate is 3 and the

You are considering the purchase of a stock that just paid a dividend of $2. Its dividends are expected to grow at 9% in perpetuity. The stock has a beta of 1.4, the risk free rate is 3% and the return on an average stock is 12%. What should you pay for a share of this stock?

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Finance Basics: The stock has a beta of 14 the risk free rate is 3 and the

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