ABC Ltd operates in an economy where the risk-free rate is 2 percent, the market return is
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Question:
ABC Ltd operates in an economy where the risk-free rate is 2 percent, the market return is 12.5 percent, and ABC Ltd has a beta coefficient of 2.5. If the dividend expected during the coming year is $2 and the growth rate of dividends is 7 percent at what price should ABC's share sell?
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