Question
A stock is expected to pay a dividend of $2.25 at the end of the year. Its beta is 1.4, the market risk premium is
A stock is expected to pay a dividend of $2.25 at the end of the year. Its beta is 1.4, the market risk premium is 5.50%, the risk-free rate is 4.00%, and the expected constant growth rate (g) is 8%. What is the stock's current price?
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Investments Analysis and Management
Authors: Charles P. Jones
12th edition
978-1118475904, 1118475909, 1118363299, 978-1118363294
