Calculate the current fair value of webistics stock

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Webistics Inc. stock has a Beta of 1.73. The current risk-free rate is 1.3% and the estimated return on the market is 6.5%. You estimate that webistics will pay dividends over the next three years of $1.05, $1.25, and $1.45. After that, you expect Webistics dividends to grow at a constant annual rate of 8%. Calculate the current fair value of webistics stock.

Reference no: EM13282360

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