Stock Ms beta coefficient is b M 0 9 The risk free rate is 5 percent, and the expected return on an average stock is 12 percent The current price of Stock M, P 0 , is $80 the next expected dividend, D 1 , is $2 40 and the stocks expected constant growth rate is 8 percent Which of the following is correct

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Question: Stock Ms beta coefficient is b M = 0.9. The risk-free rate is 5 percent, and the expected return on an average stock is 12

Stock Ms beta coefficient is b _M = 0.9. The risk-free rate is 5 percent, and the expected return on an average stock is 12 percent. The current price of Stock M, P ₀, is $80; the next expected dividend, D ₁, is $2.40; and the stocks expected constant growth rate is 8 percent. Which of the following is correct?

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