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Review the table below: Ford Motor Company anticipates paying a dividend of $2.30 next year and intends to increase the dividend by 3% per year

Review the table below: Ford Motor Company anticipates paying a dividend of $2.30 next year and intends to increase the dividend by 3% per year in perpetuity.

Company Beta

US Steel 1.77

Ford Mo Co 1.31

General Electric 1.20

Boeing 0.94

Amazon 0.90

Starbucks 0.79

McDonalds 0.51

Walmart 0.26

Market Details

Current T-Bill Price 975.88

Historic Average 1 year T-Bill Rtn 2.3%

Current Market Return 8.5%

Historic Average Market Return 8.9%

What is the expected price of Ford stock today?

  • $27.17

  • None of the above

  • $28.33

  • $30.01

  • $28.95

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