Charlie Dobbs Is Considering Investing in Astrotech

Multiple Choice

Charlie Dobbs is considering investing in Astrotech. His research has revealed the following: The market is returning 11%
Three month treasury bills are yielding 5%
Astrotech's beta is 1.2
Astrotech recently paid a dividend of $1.50
Analysts expect Astrotech to grow at 4% indefinitely
How much should Charlie be willing to pay for a share of Astrotech?

A) $19.02
B) $12.00
C) $10.26
D) $18.29