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Thames Inc.'s most recent dividend was $2.6 per share (D0 = $2.6). The dividend is expected to grow at a rate of 5% per year. The risk-free rate is 4% and the return on the market is 10%. The company's beta is 1.5
A) What is the required rate of return on the stock, ks? (2 points)
B) What is the price of the stock today, P0? (2 points)
C) What is the price of the stock three years from now, P3? (2 points)
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