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Trinity Manufacturing is expected to pay a dividend of D1 = $1.25 per share at the end of the year, and that dividend is expected
Trinity Manufacturing 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 1.70, the market risk premium (MRP) is 5.50%, the real risk-free rate (r*) is 1.50% and the expected inflation risk premium is expected to be 2.50 percent. What is the company's current stock price? Do not round intermediate calculations. Show Work and formula.
A. $13.44 B.$12.93 C.$17.01 D.$14.80 E. $18.03
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