What should the market price of the stock be

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Reference no: EM133379013

Question: The risk-free rate of return is 3% and the expected return on the market is 8%. Stock ABC has a beta coefficient of 1.2, an earnings and dividend growth rate of 6%, and a current dividend of $2.60 per share. What should the market price of the stock be? If the current price is $75 what should you do?

Reference no: EM133379013

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