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What should the stocks equilibrium price be

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Reference no: EM132488129

Question 1: Stock X has a beta of 1.2. The risk-free rate is 4%, and the market risk premium is 6%. The stock will pay a dividend of $2 per share next year, and the dividend is expected to grow at a constant rate of 10% per year. What should the stock's equilibrium price be?

Reference no: EM132488129

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