A Corporation will a dividend of $8.00 per share, and that dividend is expected to...
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A Corporation will a dividend of $8.00 per share, and that dividend is expected to grow at a constant rate of 5% per year in the future. The companys beta is 1.50, the market return is 6.50%, and the risk-free rate is 3.50%. What is the companys current stock price?
| A. $280.00 | |
| B. $96.97 | |
| C. $266.67 | |
| D. $101.82 |
Answers D is incorrect. which one is correct and why?
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