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Current fair price of stock according to capm

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Stock A is expected to pay a dividend of $2 at the end of this year, and its expected end-of-year price is $40. If the stock's beta is 0.9, market risk premium is 11%, and the risk-free rate is 3%, what is the current fair price of this stock according to CAPM? Round your answer to the nearest cent; do not use the $ sign (i.e., if the answer is $21.3567, enter it as 21.36).

Reference no: EM132523567

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