If a publicly-traded company has a beta of 1.7 and the riskless rate for one-year Treasury bills is 4.5% and the expected return for the market is 12.5%. What is the company's capitalization rate? Suppose the company has current earnings of
$5.20 per share that have been growing at a rate of 6.5%. What should be the company's share price using a capitalization of earnings approach?

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