Question
The Island Hotel Company, Inc. just paid a dividend of $2.25 per share, and that dividend is expected to grow at a constant rate of
The Island Hotel Company, Inc. just paid a dividend of $2.25 per share, and that dividend is expected to grow at a constant rate of 4.50% per year in the future. The company's beta is 2.75, the market risk premium is 6.50%, and the risk-free rate is 2.75%. Using CAPM, at what price should the company's stock sell?
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The International Handbook Of Public Financial Management
Authors: Richard Allen, Richard Hemming, B. Potter
1st Edition
1137574895, 978-1137574893
