Question
The Francis Company is expected to pay a dividend of D1 = $1.25 per share at the end of the year, and that dividend is
The Francis Company is expected to pay a dividend of D1 = $1.25 per share at the end of the year, and that dividend is expected to grow at a constant rate of 6.00% per year in the future. The company's beta is 0.80, the market risk premium is 5.50%, and the risk-free rate is 4.00%.
What is the company's current stock price? Do not round intermediate calculations.
a. $14.88 b. $35.71 c. $20.83 d. $55.21 e. $52.08
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International Finance Theory and Policy
Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz
10th edition
978-0133425895, 133425894, 978-0133423631, 133423638, 978-0133423648
