Rivertown inc paid a dividend of 80 last year the company, Ask an Expert

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Rivertown Inc. paid a dividend of $.80 last year. The company expects to increase the dividend at a constant rate of 5% per year, indefinitely. The stock price is $913 currently, with a beta of 0.85. The market risk premium is 12% and the risk-free rate is 4%, what will the price of Rivertown's stock be if its beta falls to 0.8.

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Financial Management, Finance

Category:- Financial Management
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