How much should an investor pay for the stock

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Exelon Corporation had earnings per share of $2.95 in 2015 and a dividend payout ratio of Corporation had earnings per share of $2.95 in 2015 and a dividend payout ratio of 35%. If dividends are expected to grow at 5% in 2016, beta is 0.75, Treasury Bill rate is 6% and market risk premium is 5.5%, how much should an investor pay for the stock?

Reference no: EM131721670

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