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-W 26478 - PRINCIPLES OF BUSINESS FINANCE BD Corporation's stock is currently selling at an equilibrium price of 540 per share. The firm has been

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-W 26478 - PRINCIPLES OF BUSINESS FINANCE BD Corporation's stock is currently selling at an equilibrium price of 540 per share. The firm has been experiencing a constant 5 percent annual growth rate. Last year's earnings per share, EPS, were $5.00 and the dividend payout ratio is 30 percent. The risk-free rate is 2 percent, and the market risk premium is 10 percent. If market risk of the stock (beta of the stock) increases by 40 percent and all other factors remain constant, what will be the new stock price? (Use 4 decimal places in your calculations. Assume market equilibrium) Select one $2235 6.52345 O. $20.85 d 52165 52475 519.95 12435 15.15 age Next page avro

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