7- Dyer Furniture is expected to pay a dividend of D1 = $1.25 per share at the end of the year, and that dividend is expected to grow at a constant rate of 6.00% per year in the future. The company's beta is 1.15, the market risk premium is 5.50%, and the risk-free rate is 4.00 %. What is Dyer's current stock price?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter12: The Cost Of Capital
Section: Chapter Questions
Problem 19P
Question
7- Dyer Furniture is expected to pay a dividend of D1 = $1.25 per share at the end of the year,
and that dividend is expected to grow at a constant rate of 6.00% per year in the future. The
company's beta is 1.15, the market risk premium is 5.50%, and the risk-free rate is 4.00 %.
What is Dyer's current stock price?
Transcribed Image Text:7- Dyer Furniture is expected to pay a dividend of D1 = $1.25 per share at the end of the year, and that dividend is expected to grow at a constant rate of 6.00% per year in the future. The company's beta is 1.15, the market risk premium is 5.50%, and the risk-free rate is 4.00 %. What is Dyer's current stock price?
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