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    Value of a Share Explained in this Solution

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    ABC is expected to pay a dividend of 3.50 per share next year. Calculate the value of a share if dividends are expected to grow at 4.0%, the riskless rate is 2.0%, the expected market risk premium is 5.0%, and the company's beta is 1.20?

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    https://brainmass.com/business/capital-asset-pricing-model/value-share-explained-solution-355859

    Solution Preview

    Share price according to dividend discount model
    Dividend discount model: Share price = Next year's dividend / (expected ...

    Solution Summary

    The share price is found in a few lines of reasoned calculations.

    $2.19

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