Expected constant growth rate

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Your stockbroker tells you the beta on Apple Corp is 1.50, a U.S. Treasury pays 3%, the S&P500 is expected to return 9.0% over the next year, and an Apple bond has a YTM of 8.0%. You know that Apple is planning to pay a $10.60 dividend per share over the next year (D1 = $10.60). Based on this information, and an expected constant growth rate of 10%, for what do you think a share of Apple should sell?

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