Course FIN5405 (Financial Accounting). The answer sheet says the answer is $21.51 but I'm a...
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Course FIN5405 (Financial Accounting). The answer sheet says the answer is $21.51 but I'm a little bit off. Please provide thorough and clear explanation. Thank you so much! 
Gold & Company's stock is expected to pay a dividend of $1.25, $1.50, and $1.75 per share at the end of the years 1 (D), 2 (D2), and 3 (D3), respectively. After that, the dividend is expected to grow at a constant rate of 0.05 (5 cents) per year forever. The stock's beta is 1.2, the market risk premium is 4% and the risk free rate is 5%. What is the price of the stock today? A B. C $20.41 $21.51 $31.53 $32.62 $44.44 MO
Course FIN5405 (Financial Accounting). The answer sheet says the answer is $21.51 but I'm a little bit off. Please provide thorough and clear explanation. Thank you so much!
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