Problem:
You are considering buying common stock in Everest, Inc. You have projected that the next dividend the company will pay will equal $7.60 and that dividends will grow at a rate of 6.0% per year thereafter. The firm's beta is 0.93, the risk-free rate is 6.1%, and the market return is 13.6%.
Required:
Question 1: What is the most you should pay for the stock now?
Note: Please provide equation and explain comprehensively and give step by step solution.