(Stocks) A stock with a beta of 1.76 is expected to pay a $1.97 dividend over...

(Stocks) A stock with a beta of 1.76 is expected to pay a $1.97 dividend over the next year. The dividends are expected to grow at 2.38% per year forever. What is the stock's value per share (to the nearest cent, no $ symbol) if the risk-free rate is 0.58 and the market risk premium (i.e., the difference between the market return and the risk-free rate) is 6.27%?
Note: You first need to find the required rate of return (r) using the CAPM equation.
Blank 1. Calculate the answer by read surrounding text.

Expert Solution

jeff jeffy answered 1 year ago

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