What should be price of the firm''s stock according to ggm

Reference no: EM13262451

Suppose that the risk free rate is 5%, the expected market return is 10%, the beta of firm XYZ is 2, the current dividend that XYZ has just paid is 1 and dividends are expected to grow at a rate of 10% per year. What should be the price of the firm's stock according to GGM?

Reference no: EM13262451

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