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    Current Price of Stock

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    If XYZ Company has a growth rate of 4%, a required rate of return (rs) of 11.5%, a most recent dividend paid of $5.00, a beta of 1.25 and the risk free rate of return is 3%, what is the current price of XYZ stock?

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    Solution Preview

    Using Dividend Discount Model,

    Current Stock Price = Expected ...

    Solution Summary

    The expert examines the current price of stocks.