Question
Disney is expected to pay a dividend of $3.25 one year from now. The dividend is expected to growth at 3% per year. The market
Disney is expected to pay a dividend of $3.25 one year from now. The dividend is expected to growth at 3% per year. The market has an historical risk premium of 7%, and the current risk free rate is 2%. The beta of Disney is 1.10. What is the value of Disney stock?
Group of answer choices
$38.20
$44.96
$48.51
$52.50
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Corporate Finance With Connect Access Card
Authors: Stephen Ross ,Randolph Westerfield ,Jeffrey Jaffe
10th Edition
1259672484, 978-1259672484
