A corporation's beta is 0.5, the risk-free rate is 2.7%, and the market risk premium is 7.2%. The stock will pay a dividend 1 year from now of $9.63, and you expect future dividends to grow at a constant rate of 4.8% per year. If the CAPM holds, what should today's stock price be? Round your answer to the nearest penny

Answer rating: 100% (QA)

The stock price can be calculated using the Gordon Growth ... View the full answer