Stock XYZ has dividends of $2 per share, and beta of 1.25. The risk-free rate...
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Stock XYZ has dividends of $2 per share, and beta of 1.25. The risk-free rate is 3% and the market risk premium is 4%. JP Morgan analysts think that XYZ's alpha is zero and its growth rate will be 5% per year. a. The price is P= $ (answer with two decimals, e.g., 12.34) b. Goldman Sachs analysts think that XYZ's is underpriced: it has an alpha of 1%, while its expected growth rate will be g=__% per year (answer an integer, e.g., 5)
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