Question
The Spartan Company just paid a dividend of $0.75 per share, and that dividend is expected to grow at a constant rate of 5.50% per
The Spartan Company just paid a dividend of $0.75 per share, and that dividend is expected to grow at a constant rate of 5.50% per year in the future. The companys beta is 1.15, the market risk premium is 5.00%, and the risk-free rate is 4.00%. What is the companys current stock price, P0?
A. $17.29
B. $18.62
C. $19.86
D. $20.67
E. $22.10
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes
7th Edition
0072866578, 9780072866575
