McCalla Food Distributors is currently paying a dividend of $1.80. This dividend is expected to grow at

Question:

McCalla Food Distributors is currently paying a of $1.80. This is expected to grow at a rate of 6 percent in the future. McCalla is 10 percent less risky than the market as a whole. The market risk premium is 7 percent, and the risk-free rate is 5 percent. What is the estimated price of this stock? Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...