Con Edison Inc. had earnings per share of $2.95 in 2014 and a dividend payout...
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Finance
Con Edison Inc. had earnings per share of $2.95 in 2014 and a dividend payout ratio of 50%. If dividends are expected to grow by 5% in 2015, beta is 0.75, Treasury Bill rate is 6% and market risk premium is 5.5%, how much should an investor pay for the stock? (to the nearest dollar).
a) $41.80
b) $30.32
c) $45.00
d) $38.39
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