Suppose the risk-free real rate of return is 4%, expected inflation is 2%, the expected return on the market is 10%, and a company has a beta of 1.2. The company has just paid a dividend of $1.00, on earnings of $3.00, and its ROE is 11%. The company's stock is presently trading at $30.00.

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The Answer of Suppose the risk-free real rate of return is 4%, expected inflation is 2%, the expected return on the market is 10%, and a company has a beta of 1.2. The company has just paid a dividend of $1.00, on earnings of $3.00, and its ROE is 11%. The company's stock is presently trading at $30.00.

Suppose the Risk-Free Real Rate of Return Is 4%, Expected