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Company A just paid a dividend of $1 (D0=1). You expect the company's dividend to grow at 5% rate forever. The company has a beta
Company A just paid a dividend of $1 (D0=1). You expect the company's dividend to grow at 5% rate forever. The company has a beta of 1, the market risk premium is 9% and the risk free rate is 1%. What is the company's stock price 5 year from now (P5) using the dividend growth rate model?
A. | 40.45 | |
B. | 30.28 | |
C. | 23.10 | |
D. | 26.80 |
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