The required return on equity market is 95 the risk-free


ABC Company just paid a dividend of $4 per share, and that dividend is expected to grow at a constant rate of 4% per year in the future. The required return on equity market is 9.5%, the risk-free rate is currently 3.5% and the company is beta is 1.75. What is your estimate of the current stock price?

Solution Preview :

Prepared by a verified Expert
Finance Basics: The required return on equity market is 95 the risk-free
Reference No:- TGS02686491

Now Priced at $10 (50% Discount)

Recommended (99%)

Rated (4.3/5)