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Please help with the following problem:

The risk-free rate of return, rRF, is 11%; the required rate of return on the market, rM, is 14%; and Schuler Company's stock has a beta coefficient of 1.5.

a) If the dividend expected during the coming year, D1, is $2.25, and if g = a constant 5%, at what price should Schuler's stock sell?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M945208

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