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NoGrowth Inc. pays a dividend of $5.00 one year from today. The dividend will remain at that level in perpetuity. The beta for this stock
NoGrowth Inc. pays a dividend of $5.00 one year from today. The dividend will remain at that level in perpetuity. The beta for this stock is 1.6. The risk-free rate is 4% per year, and the expected return on the market index is 10%. The fair price for this stock is closest to:
$83.33 | ||
$50.00 | ||
$36.76 | ||
$25.00 |
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