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Should buy the stock for Haulin It Towing Company

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Reference no: EM132959121

Haulin' It Towing Company is selling a stock for $16. The stock just paid a dividend of $0.60, and this dividend is expected to grow by 15% per year for three years. After that, it will grow at a constant rate of 4%.

Problem 1: The stock's beta is 1.7, the risk-free rate of interest is 1.75% and the market risk premium is 5.25%. Should you buy the stock? Explain your decision

Reference no: EM132959121

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