Question
The stock price of a certain company currently sells for $27.75 a share. The stocks dividend is projected to increase at a constant rate of
The stock price of a certain company currently sells for $27.75 a share. The stocks dividend is projected to increase at a constant rate of 7.50% per year. The beta of this company is 1.65, the risk-free rate is 6.5% and the market risk premium is 10.75%. What is the expected stock price 5 years from today?
| $36.27 | ||
| $38.02 | ||
| $39.84 | ||
| $34.58 | ||
| $32.96 |
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Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
9th Edition
1711
