A stock has a of 3, and the expected market return this year is...
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A stock has a of 3, and the expected market return this year is 11.06%, and the current risk-free rate is 1.59%. The firm just recently released a dividend for $0.65 per share, and it expects that dividends will continue to grow at the sustainable growth rate for the future. Given that firm equity was $259,500.00 last year, and that the firm had Net Income of $73,764.25 and dividends were $48,684.40. What is the price per share of the stock? (tolerance is 0.1, round to 2 decimals, do not enter $ symbol)
(a) What is the price of the stock (round to 2 decimals)?
Also, are there any shortcuts to this problem? If not could you explain how it is solved. thanks.
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