China america manufacturing has a beta of 150 the risk-free


China America Manufacturing has a beta of 1.50, the risk-free rate of interest is currently 12 percent, and the required return on the market portfolio is 18 percent. The company plans to pay a dividend of $2.45 per share in the coming year and anticipates that its future dividends will increase at an annual rate consistent with that experienced over the 2001-2003 period. Compute the price of common stock.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: China america manufacturing has a beta of 150 the risk-free
Reference No:- TGS02840653

Expected delivery within 24 Hours