Question
A company just paid a dividend of $1.25 per share, and that dividend is expected to grow at a constant rate of 8.00% per year
A company just paid a dividend of $1.25 per share, and that dividend is expected to grow at a constant rate of 8.00% per year in the future. The company's beta is 1.45, the market risk premium is 7.50%, and the risk-free rate is 4.00%. What is the company's current stock price?
Please include any formulas that are used. Please do not use excel to solve.
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Public Finance A Contemporary Application Of Theory To Policy
Authors: David N. Hyman
5th Edition
0030113172, 978-0030113178
