The stocks beta is 17 the risk-free rate of interest is 25


EHB Truck Company is selling stock for 13$. The stock just paid a dividend of $.60 and this dividend is expected to grow by 15% per year for three years. After that it will grow at a constant rate of 4%. The stocks beta is 1.7, the risk-free rate of interest is 2.5% and the market risk premium is 5.25%. Should you buy the stock? (Round to dollars and cents or two decimal points)

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Financial Management: The stocks beta is 17 the risk-free rate of interest is 25
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