Question
Given the following information for the stock of FosterCompany, calculate the risk premium on its common stock. Current price per share of common stock $49.69
Given the following information for the stock of FosterCompany, calculate the risk premium on its common stock.
Current price per share of common stock
$49.69
Expected dividend per share next year
$2.68
Constant annual dividend growth rate
8.9%
Risk-free rate of return
3.4%
The risk premium on Foster stock is ______%?
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Management Process
Authors: Lee Long
4th Edition
978-0201822939,0201822938
