I need this question answer general Accounting Assume the risk-free rate is 6% and the marketrisk premium is 6%. The stock of Physicians CareNetwork (PCN) has a beta of 1.0. The lastdividend paid by PCN was $2 per share. Whatwould be the stock value if the growth rate were10%?a. $50.00b. $100.00c. $110.00d. $115.00

Step 1: Define Growth RateThe growth rate is a method for a business to measure how much their firm…

Answered: Assume the risk-free rate is 6% and the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Assume the risk-free rate is 6% and the market risk premium is 6%. The stock of Physicians Care Network (PCN) has a beta of 1.0. The last dividend paid by PCN was $2 per share. What would be the stock value if the growth rate were 10%? a. $50.00 b. $100.00 c. $110.00 d. $115.00