Question
Dyer Furniture is expected to pay a dividend of D 1 = $1.25 per share at the end of the year, and that dividend is
Dyer Furniture is expected to pay a dividend of D1 = $1.25 per share at the end of the year, and that dividend is expected to grow at a constant rate of 6.00% per year in the future. The company's beta is 1.15, the market risk premium is 5.50%, and the risk-free rate is 4.00%. What is Dyer's current stock price?
Question 7 options:
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$28.90
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$29.62
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$30.36
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$31.12
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Short Term Financial Management
Authors: Ned C. Hill, William L. Sartoris
3rd Edition
0023548320, 978-0023548321
