Applied Materials Inc. (Symbol: AMAT) has the following financial statistics: stock price = $19.08, market cap = $25.83 billion, beta = 0.3, dividend payout ratio = 23%, EPS = $1.10, Expected DPS = $0.24, analyst forecast of earnings growth rate = 12%. Suppose required rate of return, r = 16%. Based on the constant growth valuation model and using the data provided, calculate the stock price.

Question options:

1)	$19 (THIS OPTION IS WRONG)

2)

$24

3)

$6

4)

$13.41

OPTION 1 IS WRONG