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The beta of Vega Inc. is 0.9, the growth rate is 6%, a promised dividend of...

The beta of Vega Inc. is 0.9, the growth rate is 6%, a promised dividend of $1 next year and the stock price is $50. Suppose Vega selects new projects with higher risk and increases its beta to 1.2. What should be its new fair stock price? Assume that dividends and market rates don’t change. Assume the risk-free rate is 4%.

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