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A company is paying $2 in dividends today, with a 1.1% growth rate. The U.S. Treasury bond yield is 3% (the risk free rate). At a stock price of $52, what is the equity-risk premium, using the dividend-discount model? Write the answer as a decimal, rounding to 2 decimal places.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91228499

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