Suppose the risk-free rate of return is 4.5 percent and the market risk premium is 6...
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Suppose the risk-free rate of return is 4.5 percent and the market risk premium is 6 percent. Stock U, which has a beta coefficient equal to 1.9, is currently selling for $33 per share. The company is expected to grow at a 4 percent rate forever, and the most recent dividend paid to stockholders was $4.00 per share. Is Stock U correctly priced? Explain. Do not round intermediate calculations. Round your answers to one decimal place. The required rate of return, that is he expected rate of return, that is %, I✔-Select- greater than lower than equal to %, which means that Select- Suppose the risk-free rate of return is 4.5 percent and the market risk premium is 6 percent. Stock U, which has a beta coefficient equal to 1.9, is currently selling for $33 per share. The company is expected to grow at a 4 percent rate forever, and the most recent dividend paid to stockholders was $4.00 per share. Is Stock U correctly priced? Explain. Do not round intermediate calculations. Round your answers to one decimal place. The required rate of return, that is he expected rate of return, that is %, I✔-Select- greater than lower than equal to %, which means that Select-
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