Ask Experts Questions for FREE Help !
Ask
    faithshinrai's Avatar
    faithshinrai Posts: 3, Reputation: 1
    New Member
    		  
    #1

    Jun 8, 2010, 04:43 PM
    What is the company's current stock price?
    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's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
    Expert
    		  
    #2

    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's Avatar
    faithshinrai Posts: 3, Reputation: 1
    New Member
    		  
    #3

    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.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Current Price of Stock [ 1 Answers ]

Did I answer this question correctly: The average firm in your company's industry grows at a constant rate of 6% and the dividend yield is 7%. Your company is about as risky as the average firm in the industry, however, due to recent innovations, earnings and dividends for the next two years,...

What would you estimate is the stocks current price? [ 1 Answers ]

A company currently pays a dividend of $2 per share, D0 $2. It is estimated that the company’s dividend will grow at a rate of 20 percent per year for the next 2 years, then the dividend will grow at a constant rate of 7 percent thereafter. The company’s stock has a beta equal to 1.2, the risk-free...

Finance/ current price of a stock [ 2 Answers ]

Jon's catering is growing at a very fast rate. Asa a result the company expects to increase its dividend to $.45, $.95, $1.60, and $2.15 over the next four years. Respectively. After that the dividend is projected to increase by 6 percent annually. The last annual dividend the firm paid was $.30 a...

View more questions Search