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McGaha Enterprises expects earnings and dividends to grow at arate of 40% for the next 4 years, after the growth rate in earningsand dividends will fall to zero, i.e., g = 0. The company's lastdividend, D0, was $1.25, its beta is 1.20, the market risk premiumis 5.50%, and the risk-free rate is 3.00%. What is the currentprice of the common stock? Select the correct answer. a. $44.24 b.$44.98 c. $45.72 d. $43.50 e. $46.46
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