Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A stock has a beta of 1, and the expected market return this year is 8.95%, and the current risk-free rate is 1.89%. The firm
A stock has a \beta of 1, and the expected market return this year is 8.95%, and the current risk-free rate is 1.89%. The firm just recently released a dividend for $3.02 per share, and it expects that dividends will continue to grow at the sustainable growth rate for the future. Given that firm equity was $545,500.00 last year, and that the firm had Net Income of $4,340.47 and dividends were $2,994.92. What is the price per share of the stock? (tolerance is 0.1, round to 2 decimals, do not enter $ symbol)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started