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The risk-free rate of return is 5%, the required rate of return on the market is 10%, and High-Flyer stock has a beta coeffic

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Required return=risk free rate+beta*(market rate-risk free rate)

=5+1.6*(10-5)

=13%

Current price=D1/(Required return-Growth rate)

=3.5/(0.13-0.06)

=$50

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