The risk-free rate is five percent and market risk premium

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Assume that the market is in equilibrium. MY stock is currently selling for $30 per share. The stock is expected to pay a $3 dividend at the end of the year. The stock’s dividend is expected to grow at a constant rate of 7 percent per year forever. The risk-free rate (rRF) is 5 percent and the market risk premium (rM – rRF) is 6 percent. What is the stock’s beta?

Reference no: EM131089238

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