Question 16

ABC Corporation just paid a dividend of D₀ = $0.75 per share, and that dividend is expected to grow at a constant rate of 6.50% per year in the future. The company's beta is 1.25, the required return on the market portfolio is 10.50%, and the risk-free rate is 4.50%. What is the company's current stock price?

		a. 14.52
		b. 11.65
		c. 9.65
		d. 13.56
		e. 17.15