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You are valuing the stock of a mature company, like IBM. It has a Beta of 0.7, and forward EPS of $3.00/share. Earnings have been

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You are valuing the stock of a mature company, like IBM. It has a Beta of 0.7, and forward EPS of $3.00/share. Earnings have been growing at 5%/year for several years and that is expected to remain steady. The Risk Free Rate is currently 1% and the Market Risk Premium is 8%. What is the value of the stock? $60.00 $500.00 $333.33 $187.50 $50.00

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