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Share of tartan corporation

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The stock of Tartan Corporation paid a dividend of $2.00 this year. Dividends are expected to grow at the constant rate of 8% indefinitely. The expected return on the market is 11%, and the risk-free rate is 4%. The equity premium is expected to remain constant for the foreseeable future. If the beta of the stock is 0.8, what is the maximum price you should pay for a share of Tartan Corporation?

Reference no: EM132081249

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