Finding the company current stock price


Problem:

A company is expected to pay a dividend of $0.75 per share next year, and that dividend is expected to grow at a constant rate of 6.50% per year in the future. The company's beta is 1.25, the market risk premium is 8.50%, and the risk-free rate is 4.50%.

Required:

Question: What is the company's current stock price?

Note: Explain all steps comprehensively.

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Accounting Basics: Finding the company current stock price
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