The current selling price of the stock is $36.72 The current selling price of the stock is $35.07 The current selling price of the stock is $25.08 The current selling price of the stock is $31.05
The current selling price of the stock is $36.72 The current selling price of the stock is $35.07 The current selling price of the stock is $25.08 The current selling price of the stock is $31.05
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:The Yempy Corp. is recently paid a dividend of
$2. The dividends are expected to grow at 20%
for next 4 years due to technological advanced
and thereafter, the growth rate settles down to
2% for ever.
The risk-free rate is 2.2% and the market risk
premium is 6%. If the beta of the stock is 1.3,
what must be the current selling price of the
company's stock?
Calculate the current selling price of the stock.
The current selling price of the stock is $36.72
The current selling price of the stock is $35.07
The current selling price of the stock is $25.08
O The current selling price of the stock is $31.05
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