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Business, 24.06.2019 14:30 orangeicecream

Assume a major investment service has just given oasis electronics its highest investment rating, along with a strong buy recommendation. as a result, you decide to take a look for yourself and to place a value on the company's stock. here's what you find: this year, oasis paid its stockholders an annual dividend of $ 3.61 3.61 a share, but because of its high rate of growth in earnings, its dividends are expected to grow at the rate of 14 14% a year for the next 4 years and then to level out at 12 % 12% a year. so far, you've learned that the stock has a beta of 1.78 1.78, the risk-free rate of return is 5 5%, and the expected return on the market is 12 12%. using the capm to find the required rate of return, put a value on this stock.

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