Question
What is the value of a stock that has a current dividend per share of $5, a beta of 1.3 and constant growth of 5%?
What is the value of a stock that has a current dividend per share of $5, a beta of 1.3 and constant growth of 5%? The return on the S&P 500 is 10% and the return on US T-Bills is 4%. Enter your answer as in dollars to two decimals with no $ sign.
Note: Please show work without the use of a financial calculator.
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Personal Finance
Authors: Jack Kapoor
6th Edition
0072350849, 9780072350845
