What is the value of a share of blue acre industries

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Suppose Blue Acre Industries will pay a $4 dividend for each of the next three years. After that the dividend will grow at a constant 3 percent forever. Further suppose that Blue Acre Industries has a beta of 1.4, the market risk premium is 6 percent, and the risk-free rate is 2 percent. What is the value of a share of Blue Acre Industries?

Reference no: EM131558700

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