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The following information to get the equity risk premium are as follow: A...

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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%
Beta1,35
Market Return7,80%

Assume that we get the same equity risk premium using CAPM or using macroeconomic model. Calculate the expected growth of P/E. 

0%
0%
100%
0%
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