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Business, 27.04.2021 16:40 addidas234cs

A stock that currently trades for $40 per share is expected to pay a yearend dividend of $2 per share. The dividend is expected to grow at a constant rate over time. The stock has a beta of 1.2, the risk-free rate is 5 percent, and the market risk premium is 5 percent. What is the stock's expected price seven years from today?

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