What is the companys current expected stock price


Problem

Human's Inc.'s last dividend (DO) was $1.12, and its earnings and dividends are expected to increase at a constant growth rate of 12%. Humana's market beta is 1.16. If the current risk-free rate is 5% and the required rate of return on the market portfolio is 12%, what is the company's current expected stock price?

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Financial Management: What is the companys current expected stock price
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