Question
Gollies Inc.'s most recent dividend was $3.00 per share (D0= $3.00). The dividend is expected to grow at a rate of 6 percent per year.
Gollies Inc.'s most recent dividend was $3.00 per share (D0= $3.00). The dividend is expected to grow at a rate of 6 percent per year.
The risk free rate is 5 percent and the return on the market is 9 percent. If the company's beta is 1.5, what is the price of the stock today?
A.
$63.60
B.
$57.14
C.
$40.00
D.
$68.06
E.
$60.57
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Contemporary Financial Management
Authors: R. Charles Moyer, James R. McGuigan, Ramesh P. Rao
13th edition
1285198840, 978-1285198842
