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Dunder-Mifflin has a beta of 1.8 and just paid a dividend of $0.85 that is expected...

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Finance

Dunder-Mifflin has a beta of 1.8 and just paid a dividend of$0.85 that is expected to grow at 3.5%. If the risk-free rate is 3%and the expected market return is 9%, what should be the price ofthe stock? A. $17.35 B. $8.54 C. $8.25 D. $17.95

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3.8 Ratings (725 Votes)
Information providedBeta 18Current dividend 085Dividend growth rate 35Risk free rate 3Expected market return 9First the expected return    See Answer
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Dunder-Mifflin has a beta of 1.8 and just paid a dividend of$0.85 that is expected to grow at 3.5%. If the risk-free rate is 3%and the expected market return is 9%, what should be the price ofthe stock? A. $17.35 B. $8.54 C. $8.25 D. $17.95

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