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What should the price of the company stock be

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Stark Industries just paid a dividend of $7.14. You estimate that Stark Industries has a beta of 0.6, the risk free rate of return is 1.3%, and the expected market risk premium is 6.5%. If you think the dividends will grow at 4.2% forever, what should the price of the company's stock be?

Reference no: EM133003091

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