Question: 4 (10 pts) Using the table below, what is the maximum that an investor should be willing to pay for the share of common stock
4 (10 pts) Using the table below, what is the maximum that an investor should be willing to pay for the share of common stock today (5/7/2022)? Table below to be used with problem #4 above: Variable Value Explanation Dividend 5% 5% for 2 years (annual estimate) and 3% growth 3% per year indefinitely thereafter. estimate Current $2.00 Dividend declared on 5/1/22 - to be paid to dividend shareholders on record as of 517123 Beta 1.0 Current estimate coefficient Expected 12.0% Historical arithmetic average (annual) return market on the S&P 500 Index return RFR 3.0% 10-year Treasury bond yield
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