Question: 1 - IfRf = 7 % , Rm = 1 2 % , and B = 1 . 2 , what is the required rate

1- IfRf =7%, Rm =12%, and B =1.2, what is the required rate of return on the firm's stock?
2- What is the value of a stock that is expected to pay a constant dividend of $2 per year if the required return is 15%?
3- What is the value of a stock if company starts increasing dividends by 3% per year beginning with the next dividend? The required return remains at 15%.

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