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Donuts Co. just paid an annual dividend of $5(D0). Assume investors expect Donuts Co.'s dividend to grow at 5% per year forever. The risk-free rate

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Donuts Co. just paid an annual dividend of $5(D0). Assume investors expect Donuts Co.'s dividend to grow at 5% per year forever. The risk-free rate is 3% and the market risk premium is 7%. Donuts Co.'s beta is 1.5 . What is the stock price of Donuts Co.? (Hint: use CAPM to compute the cost of equity, which can be used as the discount rate in DDM) $58.82$67.56$77.00$61.76

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