Question

The risk free rate of teturn is 5.00%. A company's required rate of return is 9.75%....

The risk free rate of teturn is 5.00%. A company's required rate of return is 9.75%. The last dividend paid was $2.75 and the expected constant growth rate is 4.75%. The company's stock has a beta of 1.0.

What is this company's stock's value?

How does the value change if the beta rises to 1.2?

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