The risk-free rate of return is 4% and the expected return on the market is 9.2%....

  

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The risk-free rate of return is 4% and the expected return on the market is 9.2%. Stock A has a beta coefficient of 1.5 and dividend growth rate 5% Current dividend is $2.10 a share. What would be the market price of the stock? The risk-free rate of return is 4% and the expected return on the market is 9.2%. Stock A has a beta coefficient of 1.5 and dividend growth rate 5% Current dividend is $2.10 a share. What would be the market price of the stock?

Answer rating: 100% (QA)

Heres how to calculate the market price of Stock A using the Constant Dividend Growth Discount Model ... View the full answer