Question
17. Gummo Corporation just paid a dividend of $0.75 per share, and that dividend is expected to grow at a constant rate of 6.5% per
17. Gummo Corporation just paid a dividend of $0.75 per share, and that dividend is expected to grow at a constant rate of 6.5% per year. The company's beta is 0.95, the required return on the market is 10.5%, and the risk-free rate is 4.5%. What is the company's current stock price?
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Financial Management Theory and Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
15th edition
130563229X, 978-1305632301, 1305632303, 978-0357685877, 978-1305886902, 1305886909, 978-1305632295
