Multiple Choice
Dyer Furniture 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 1.15, the market risk premium is 5.50%, and the risk-free rate is 4.00%. What is Dyer's current stock price?
A) $28.90
B) $29.62
C) $30.36
D) $31.12
E) $31.90
Correct Answer:
Verified
Correct Answer:
Verified
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