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Question
Berg Inc. has just paid a dividend of $2.00. Its stock is now selling for $48 per share. The firm is half as risky as the market. The expected return on the market is 14 percent, and the yield on U.S. Treasury bonds is 11 percent. If the market is in equilibrium, what rate of growth is expected?
a. 13%
b. 10%
c. 4%
d. 8%
e. u22122%
Answer
This answer is hidden. It contains 294 characters.
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