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(Solved): The Francis Company is expected to pay a dividend of D1 = $1.25 per share at the end of the year, an ...



The Francis Company is expected to pay a dividend of D1 = $1.25 per share at the end of the year, and that dividend is expected to grow at a constant rate of 6% per year in the future. The company's beta is 1.2, the market return is 9.5%, and the risk-free rate is 4%. What is the company's current stock price?



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By the dividend growth model, we have the current price,P0=D1r?gD1 = dividend in yea
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