Question 24 (3 points)

You are trying to value an all equity firm which is in a stable growth phase. The firm's beta is 0.9. T-bond is 5%, the current EPS is $6, the current dividend payout ratio is 50% and the expected growth in earnings and dividends is 4%. The market return is 12%. What is the value of this firm?

Question 24 options:

$37.73

$38.25

$43.85

$42.73