Question
A company is expected to pay a dividend of $0.75 per share next year, and that dividend is expected to grow at a constant rate
A company is expected to pay a dividend of $0.75 per share next year, and that dividend is expected to grow at a constant rate of 6.50% per year in the future. The company's beta is 1.25, the market risk premium is 8.50%, and the risk-free rate is 4.50%. What is the company's current stock price?
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
13th edition
1439078106, 111197375X, 9781439078105, 9781111973759, 978-1439078099
