Determination of current stock price


Question: Schnusenberg Corporation just paid a dividend of D0 = 0.75 dollar per share and that dividend is expected to grow at a constant rate of 6.50 percent per year in the future.  The company's beta is 1.25, the required return on the market is 10.50 percent, & the risk-free rate is 4.50 percent.  Determine the company's current stock price?

[A]      $15.26

[B]      $15.64

[C]      $16.03

[D]      $14.52

[E]      $14.89

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Finance Basics: Determination of current stock price
Reference No:- TGS016723

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