A stock has a beta of 2.2, the risk-free rate is 2.01% and the market risk premium

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A stock has a beta of 2.2, the risk-free rate is 2.01% and the market risk premium is 8.37%. The stock will pay a constant $2.04 as dividend in perpetuity. What is the price of the stock?

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Intermediate Financial Management

ISBN: 9780357516669

14th Edition

Authors: Eugene F Brigham, Phillip R Daves

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Posted Date: Aug 30, 2023 06:56 AM

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A stock has a beta of 2.2, the risk-free rate is 2.01% and the market risk premium

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The price of the stock can be calculated using the dividend ... View the full answer

Intermediate Financial Management

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