Humana Inc.s last dividend (D 0 ) was $1.12, and its earnings and dividends are expected to
Question:
Humana Inc.’s last dividend (D0) was $1.12, and its earnings and dividends are expected to increase at a constant growth rate of 12 percent. Humana’s (www.humana.com) market beta is 1.16. If the current risk-free rate is 5 percent and the required rate of return on the market portfolio is 12 percent, what is the company’s current expected stock price?
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To calculate the current expected stock price of Humana Inc we can use the Dividend ...View the full answer
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