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Please answer the question below with an explanation Monk Corporation (MC) has recently paid an annual...

Please answer the question below with an explanation

Monk Corporation (MC) has recently paid an annual dividend of $1.50. The dividend is expected to increase forever at a 3.0% annual rate. MC’s beta is exactly 0.70. The riskless rate is 3% and the market risk premium is 6%. What is the current value of MC shares?

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Answer #1

✓ The current value of MC shares is $ 36.79

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