Question
Human's Inc.'s last dividend (D0) was $1.12, and its earnings and dividends are expected to increase at a constant growth rate of 12%. Humana's
Human's Inc.'s last dividend (D0) was $1.12, and its earnings and dividends are expected to increase at a constant growth rate of 12%. Humana's market beta is 1.16. If the current risk-free rate is 5% and the required rate of return on the market portfolio is 12%, what is the company's current expected stock price? Hint-round up to the nearest whole dollar.
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Corporate Finance A Focused Approach
Authors: Michael C. Ehrhardt, Eugene F. Brigham
6th edition
1305637100, 978-1305637108
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