Would buy or sell or hold the share

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Problem 1: Shares in Deepdale Industries have a beta of 0.7. The market risk premium is 6.7%, and the risk free rate is 3.7%. Deepdale's most recent dividend was $1.40 per share, and the dividends are expected to grow at a 4% annual rate indefinitely. If the share price is $36.50, would you buy or sell or hold the share. Explain with calculations.

Reference no: EM132996280

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