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Business, 30.05.2020 17:58 kendalljanae

McGaha Enterprises expects earnings and dividends to grow at a rate of 28% for the next 4 years, after the growth rate in earnings and dividends will fall to zero, i. e., g = 0. The company's last dividend, D0, was $1.25, its beta is 1.20, the market risk premium is 5.50%, and the risk-free rate is 3.00%. What is the current price of the common stock?

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McGaha Enterprises expects earnings and dividends to grow at a rate of 28% for the next 4 years, aft...
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