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The Francis Company Is Expected to Pay a Dividend of D1

Question 89

Multiple Choice

The Francis Company 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 1.70,the market risk premium is 5.50%,and the risk-free rate is 4.00%.What is the company's current stock price? Do not round intermediate calculations.


A) $13.44
B) $12.93
C) $17.01
D) $14.80
E) $18.03

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