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You are considering an investment in MBC Group's stock, which is expected to pay a dividend of $3.96 a share at the end of the

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You are considering an investment in MBC Group's stock, which is expected to pay a dividend of $3.96 a share at the end of the year (D1 = $3.96) and has a beta of 1.1. The risk-free rate is 5%, and the market risk premium is 6.5%. The firm currently sells for $36.00 a share, and its dividend is expected to grow at some constant rate g. 16. Assuming the market is in equilibrium, what does the market believe will be the stock price at the end of 4 years?* OA) $36.115 B) $37.68 C) $41.4 D) $36 OE) None of the above

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