Question: question 12 and $1.25 per Ex. A stock is expected to pay a dividend of 60 cents the next year, $1.10 the following year, year

question 12

question 12 and $1.25 per Ex. A stock is expected to pay

and $1.25 per Ex. A stock is expected to pay a dividend of 60 cents the next year, $1.10 the following year, year after that. What is its price? The riskfree rate is 9%, the stock has a beta of 1.5 and the expected market risk premium is 6%

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