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Suppose that the ABC Company is expected to be worth $100 per share one year from today. How much are you willing to pay for one share today if the risk-free rate is 7%, the expected rate of return of the market is 15%, and the company's beta is 1.5? Assume that no dividends are paid, and the company is all equity-financed.

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Financial Management, Finance

Category:- Financial Management
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