Question
The I's Have It Company just paid a dividend of $0.65 per share, and that dividend is expected to grow at a constant rate of
The I's Have It Company just paid a dividend of $0.65 per share, and that dividend is expected to grow at a constant rate of 4.75% per year in the future. The company's beta is 1.3, the market risk premium is 5.10%, and the risk-free rate is 2.25%. What is the company's current stock price, P 0? Do not round intermediate calculations.
| a. | $15.74 | |
| b. | $10.98 | |
| c. | $56.50 | |
| d. | $53.94 | |
| e. | $16.49 |
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Public Finance And Public Policy
Authors: Jonathan Gruber
2nd Edition
0716766310, 9780716766315
