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View Full Version : What is the company's current stock price?


faithshinrai
Jun 8, 2010, 04:43 PM
Schnusenberg Corporation just paid a dividend of $0.65 per share, and that dividend is expected to grow at a constant rate of 7.00% per year in the future. The company's beta is 0.95, the required return on the market is 10.50%, and the risk-free rate is 5.00%. What is the company's current stock price?

Fr_Chuck
Jun 8, 2010, 04:47 PM
You tell us, we don't do your home work, we can help you if you tell us your answer and how to get it

faithshinrai
Jun 8, 2010, 06:25 PM
That's the problem. I know the answer is 21.57. I got it wrong on the test but want to know how to figure it out. So I will know how to do it.