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Human’s Inc.’s last dividend (D0) was $1.25, and its earnings and dividends are expected to increase...

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Finance

Human’s Inc.’s last dividend (D0) was $1.25, and its earningsand dividends are expected to increase at a constant growth rate of5%. Humana’s market beta is 1.2. If the current risk-free rate is3% and the required rate of return on the market portfolio is 12%,what is the company’s current expected stock price? Choice: $7.50Choice: $9.58 Choice: $14.92 Choice: $17.89

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Information provided Last dividend 125 Growth rate 5 Beta 12 Risk free rate 3 Required return on the market portfolio 12 The question is solved by caclualting the    See Answer
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Human’s Inc.’s last dividend (D0) was $1.25, and its earningsand dividends are expected to increase at a constant growth rate of5%. Humana’s market beta is 1.2. If the current risk-free rate is3% and the required rate of return on the market portfolio is 12%,what is the company’s current expected stock price? Choice: $7.50Choice: $9.58 Choice: $14.92 Choice: $17.89

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