Question
A stock has a beta of 1.59. The current risk free rate in the economy is 2.00%, while the historical market portfolio risk premium is
A stock has a beta of 1.59. The current risk free rate in the economy is 2.00%, while the historical market portfolio risk premium is 5.50%. The stock is expected to pay a $1.34 dividend next year. If we assume that dividends will grow constantly forever at 4.00%, what is a fair price for the stock today?
Answer format: Currency: Round to: 2 decimal places.
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Financial Accounting The Impact On Decision Makers
Authors: Gary A Porter, Curtis L Norton
8th Edition
1111534861, 9781111534868
