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(Stocks) A stock with a beta of 2.06 is expected to pay a $0.51 dividend over the next year. The dividends are expected to grow
(Stocks) A stock with a beta of 2.06 is expected to pay a $0.51 dividend over the next year. The dividends are expected to grow at 2.47% per year forever. What is the stock's value per share (to the nearest cent, no $ symbol) if the risk-free rate is 0.95% and the market risk premium (i.e., the difference between the market return and the risk-free rate) is 7.52%? Note: You first need to find the required rate of return (r) using the CAPM equation.
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