Question: Answer & Explanation Solved by verified expe a.$129.96 Issue a buy Step-by-step explanation dividend $1.46 dividend 8 years ago $0.8497 1.46=0.8497(1+g) & 9=7.0% stock price

Answer & Explanation Solved by verified expe a.$129.96 Issue a buy Step-by-step explanation dividend $1.46 dividend 8 years ago $0.8497 1.46=0.8497(1+g) & 9=7.0% stock price $118 payout ratio 60% ER=rf+Beta(Risk Premium) =3.2+0.9(5.5) =8.15% KS=1.46/(.0815-.07) =$129.96 Show less A

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