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  3. 4. you expect future dividends for a stock to grow

4. You expect future dividends for a stock to grow at a constant rate of...

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4. You expect future dividends for a stock to grow at a constant rate of 4.5% per year. Its next dividend of $7.45 will be paid exactly one year from now, the stock's beta is 1.5, the risk-free rate is 1.2%, and the market risk premium is 7.0%. Assuming market efficient and using the CAPM to explain required return, what should the stock price be today? Round your answer to the nearest penny

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