Question
The expected market return is 7.5% and the risk-free rate is 3.0%. The beta for AAA Roasters is 1.10 and its current dividend is 3.50.
The expected market return is 7.5% and the risk-free rate is 3.0%. The beta for AAA Roasters is 1.10 and its current dividend is 3.50. The AAA dividend is expected to grow at 4.0% forever. What is the value of one share?
| A. | $88.61 | |
| B. | $92.15 | |
| C. | $100.00 | |
| D. | $104.00 |
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1st Edition
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