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Problem:

Frazier Manufacturing paid a dividend last year of $2, which is expected to grow at a constant rate of 5%. Frazier has a beta of 1.3.

Required:

Question: If the market is returning 11% and the risk-free rate is 4%, calculate the value of Frazier's stock.

Note: Please show how to work it out.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91163393

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