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How would the price change if risk-free rate were to drop

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Reference no: EM132887690

Question 1: What is the price you would be willing to pay for a company with a beta of 1.2 and the expected growth potential of 6% if the risk-free rate is 5%, the return on the market is 16%, and the last dividend paid was $2.5? How would the price change if the risk-free rate were to drop to 3%?

Reference no: EM132887690

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