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Bob's Burgers has a beta of .8 and just paid a dividend of $1.2 that is...

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Finance

Bob's Burgers has a beta of .8 and just paid a dividend of $1.2that is expected to grow at 3.5%. If the risk-free rate is 3% andthe market risk premium is 6%, what should be the price of thestock?

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3.7 Ratings (359 Votes)
Information providedRisk free rate 3Market risk premium 6Beta 08Current dividend 12Dividend growth rate 35First the required return on a stock    See Answer
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Transcribed Image Text

Bob's Burgers has a beta of .8 and just paid a dividend of $1.2that is expected to grow at 3.5%. If the risk-free rate is 3% andthe market risk premium is 6%, what should be the price of thestock?

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