Question
A) A stock has just paid a $3.00 dividend from earnings per share of $5.50. The risk-free rate is 2.75% and the risk premium is
A) A stock has just paid a $3.00 dividend from earnings per share of $5.50. The risk-free rate is 2.75% and the risk premium is 7%. The firm's beta is 1.7. If the dividend is expected to grow at a constant rate, what is the price of the stock today?
B) Given the information in question A, what do you expect the price to be in 1 year?
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International Financial Reporting Standards An Introduction
Authors: Belverd Needles, Marian Powers
2nd edition
053847680X, 978-1111793234, 1111793239, 978-0538476805
