Determine and find what the value of the stock is

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Problem 1: SC is expected to pay a dividend of $2.00 in the coming year. Dividends are expected to grow at the rate of 2% per year. The risk-free rate is 4% and the market risk premium is 5%. GM has a beta of 1.2. The value of the stock is:

a. $20.00

b. $25.00

c. $30.00

d. $40.00

Reference no: EM132722006

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