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We have the following information for the company. The stock pays a $10 dividend, and it will grow by 100% the first year, 30% the second year and 3% forever after that. The unlevered beta is 1, D/E is 60/40 and the tax rate is .3. Additionally, we know the Treasury bond rate is .08 and the ROR of the S&P has been 10%. Derive the stock price of this company.

Financial Management, Finance

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  • Reference No.:- M91610412

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