The 3 and 6 month t-bills and the sp500 are currently


Question: The 3 and 6 month T-bills and the S&P500 are currently returning 3%, 3.76% and 8.2% per annum respectively. A Company earns a 15% rate of return on the 36% of its earnings that it retains, it's beta is .98 and it plans to pay a dividend of $3.89 per share, what is your best estimate of its current stock price?

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Finance Basics: The 3 and 6 month t-bills and the sp500 are currently
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