What price should shares of framingham stock be selling

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The Framingham Company expects to grow at 4% indefinitely. Economists are currently asserting that investment opportunities in short term government securities (Treasury bills) are readily available at a risk free rate of 5%. The stock market is returning an average rate of 9%. Framingham's beta has recently been calculated at 1.4. The firm recently paid an annual dividend of $1.6 per share. At what price should shares of Framingham stock be selling? Round the answer to the nearest cent

Reference no: EM131047682

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