Determine the value of the stock

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Soft Cola currently pays a dividend of Rs.4.5 per share on its common stock. The dividend is expected to grow at a rate of 9%. The risk-free rate is 6% and the Return from the market is 12%. The beta for the stock is 0.98. Determine the value of the stock. If the stock is currently trading at Rs.90, will you be interested in buying the stock?

Reference no: EM133116676

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