Question
A Company is expected to pay a dividend of $2.25 per share at the end of the year, and that dividend is expected to grow
A Company is expected to pay a dividend of $2.25 per share at the end of the year, and that dividend is expected to grow at a constant rate of 5.00% per year in the future. The company's beta is 1.15, the market risk premium is 5.50%, and the risk-free rate is 4.00%. What is the company's current stock price?
| $48.83 | ||
| $47.50 | ||
| $43.81 | ||
| $42.25 |
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Personal Finance Turning Money Into Wealth
Authors: Arthur J. Keown
6th Edition
0132719169, 978-0132719162
