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7. A firm paid a dividend of $2 per share yesterday and expects the growth rate of dividends to be 5% in the future. If
7.
A firm paid a dividend of $2 per share yesterday and expects the growth rate of dividends to be 5% in the future. If the stock beta is 1.25, the risk-free rate 4% and the return on the market portfolio 15%, the current price of the common share is: i) $16.47 ii) $15.68 iii) $11.83 iv) $11.27 v) $10.67
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