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Rally Corporation just paid a dividend of D0 = $0.75 per share, and that dividend is expected to grow at a constant rate of 4.50%
Rally Corporation just paid a dividend of D0 = $0.75 per share, and that dividend is expected to grow at a constant rate of 4.50% per year in the future. The company's beta is 1.25, the required return on the market is 10.50%, and the risk-free rate is 4.50%. What is the company's current stock price?
a) $10.45 b) $10.89 c) $12.26 d) $12.64 e) None of the above
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