Cartwright Brothers’ stock is currently valued $40 a share. The stock is expected to pay a $2 dividend at the end of the year (D1 = $2.00). The dividend growth rate is expected to be a constant 7% per year, forever. The risk-free rate and market risk premium are each 6%. What is the stock’s beta?

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A: Since you have asked multiple question, we will solve the first question for you. If you want any…

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A: In this we have to use constant growth model of dividend.