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The following information to get the equity risk premium are as follow:
Exp inflation | 6% |
Expected Dividend per Share | 75 |
Fair Value of Stock | 30000 |
Reinvestment rate of Dividend | 0,02% |
Yield on Treasury Bond | 4,25% |
Expected growth of labor supply | 1,50% |
Expected growth of labor productivity | 0,75% |
| Beta | 1,35 |
| Market Return | 7,80% |