Gandhas Pharmaceutical Corporations beta is 1.5. The current risk-free rate is 4.5 percent and the market risk

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Gandha’s Pharmaceutical Corporation’s beta is 1.5. The current risk-free rate is 4.5 percent and the market risk premium is 9 percent. Gandha currently (time 0)

pays a dividend of $2 per share. This dividend is expected to grow at a rate of 20 percent for the next 3 years. The current stock price is $30, and the consensus of security analysts is that this price will increase by 50 percent by the end of year  LO1

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