The annual risk-free rate of return

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The annual risk-free rate of return is 8 percent and the investor believes that the market will rise annually at 14 percent. If a stock has a beta coefficient of 1.7 and its current dividend is $3, what should be the value of the stock if its earnings and dividends are growing annually at 7 percent? Round your answer to the nearest cent.

Reference no: EM13956430

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