Hello tutor please provide correct answer general Accounting Human's Inc.'s last dividend was $1.50 and itsearnings and dividends are expected to increaseat a constant growth rate of 4%. Humana'smarket beta is 1.8. If the current risk-free rate is5% and the required rate of return on the marketportfolio is 12%, what is the company's currentexpected stock price?a. $7.50b. $9.58c. $11.47d. $17.89

The question requires the determination of the expected stock price. Stock valuation is the process…

Answered: Human's Inc.'s last dividend was $1.50…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter8: Basic Stock Valuation

Section: Chapter Questions

Problem 16MC

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