A company just paid dividends of $2.75 per share. The company has a constant growth of 5.5%.
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Question:
A company just paid dividends of $2.75 per share. The company has a constant growth of 5.5%. The risk-free rate is 2.5%, beta is 0.90 and market return of 8%. The stock is selling at $75.50.
a. Determine the rate of return on equity.
b. What is the stock price after a year?
Related Book For
Foundations Of Finance
ISBN: 9781292155135
9th Global Edition
Authors: Arthur J. Keown, John D. Martin, J. William Petty
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