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A Corporation will a dividend of $8.00 per share, and that dividend is expected to...

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Finance

A Corporation will a dividend of $8.00 per share, and that dividend is expected to grow at a constant rate of 5% per year in the future. The companys beta is 1.50, the market return is 6.50%, and the risk-free rate is 3.50%. What is the companys current stock price?

A.

$280.00
B.

$96.97
C.

$266.67
D.

$101.82

Answers D is incorrect. which one is correct and why?

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