An analyst expects aquinas research inc to pay its first


An analyst expects Aquinas Research Inc. to pay its first dividend of $0.50 per share five years from today. She expects future dividends to then grow indefinitely at a constant rate of 8.5% per year. Assume the risk-free rate is 3.9%, market risk premium is 7%, and the beta on Aquinas common stock is 1.8 Compute the value of Aquinas common stock.

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Financial Management: An analyst expects aquinas research inc to pay its first
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