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    Current stock price

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    The Lashgari Company is expected to pay a dividend of $1 per share at the end of the year, and that dividend is expected to grow at a constant rate of 5% per year in the future. The company's beta is 1.2, the market risk premium is 5%, and the risk-free rate is 3%. What is the company's current stock price?

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    Solution Preview

    Using the dividend discount model
    Current Price = D1/(ke-g)
    D1 = expected ...

    Solution Summary

    The solution explains how to calculate the current stock price