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We have a stock not paying any dividends for 5 years. Afterward it pays a dividend of $8 at end of 5 years. Afterward. the growth rate will decline to 3% annuanlly and peretually. You also know that the risk premium, the risk free rate and the beta are 6%, 2% and .7 respectively. Compute the price now.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92164300

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