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Assume that a company is expected to pay a dividend of $2.00 next year and...

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Accounting

Assume that a company is expected to pay a dividend of $2.00 next year and the dividend will not grow. The risk-free rate is 7.5%, beta is 1.25 and the market-risk premium is 6%. What is the intrinsic value of a share of the company? The current market value of the share is $12. Is the stock fairly valued?

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