James Company is expected to pay a dividend in year 1 of $3.50 in the...
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Finance
James Company is expected to pay a dividend in year 1 of $3.50 in the next year. Your stock analyst expects that the dividend of James Company will not grow in the future. Your analyst observes that the risk-free rate is 2.7% and that the market's expected return is 9%.
If the analyst observes the beta of James to the market is 0.80, what is the required rate of return on James stock?
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