Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN: 9781337395083
Author: Eugene F. Brigham, Phillip R. Daves
Publisher: Cengage Learning
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Blue Lake Hardware stock is expected to be priced at $336.23 in 1 year, pay a dividend of $11.5
9 in 1 year, and pay a dividend of $12.37 in 2 years. The stock has a risk premium of 8.47
percent, the risk-free rate is 5.67 percent, and inflation is expected to be 3.81 percent. What is
the current price of Blue Lake Hardware stock?
Input instructions: Round your answer to the nearest cent (so 2 decimal places).
Input instructions: Round your answer to the nearest cent (so 2 decimal places).
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Transcribed Image Text:Blue Lake Hardware stock is expected to be priced at $336.23 in 1 year, pay a dividend of $11.5 9 in 1 year, and pay a dividend of $12.37 in 2 years. The stock has a risk premium of 8.47 percent, the risk-free rate is 5.67 percent, and inflation is expected to be 3.81 percent. What is the current price of Blue Lake Hardware stock? Input instructions: Round your answer to the nearest cent (so 2 decimal places). Input instructions: Round your answer to the nearest cent (so 2 decimal places).
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