Calculate the risk premium on its common stock

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Reference no: EM131113037

Given the following information for the stock of Foster Company, calculate the risk premium on its common stock.

Current price per share of common ........ $50.00

Expected dividend per share next year ...... $ 3.00

Constant annual dividend growth rate ....... 9%

Risk-free rate of return ............ 7%

Reference no: EM131113037

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