A Company has just paid an quarterly dividend of $2.5 per share, and that dividend is expected to grow at a constant rate of 5.00% per year in the future. The company's beta is 1.15, the market risk premium is 5.5%, and the risk-free rate is 4.0%. What is the company's current stock price?

A Company has just paid an quarterly dividend of $2.5 per share, and that dividend is expected to grow at a constant rate of 5.00% per year in the future. The company's beta is 1.15, the market risk premium is 5.5%, and the risk-free rate is 4.0%. What is the company's current stock price?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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