12.4 Assume the risk-free rate is 6 percent and the market risk premium is 6 percent. The stock of P 1 answer below »

12.4 Assume the risk-free rate is 6 percent and the market risk premium is 6 percent. The stock of Physicians Care Network (PCN) has a beta of 1.5. The last dividend paid by PCN (D0) was $2 per share. a. What would PCN’s stock value be if the dividend was expected to grow at a constant: • –5 percent? • 0 percent? • 5 percent? • 10 percent?

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