Assume that a company will pay a dividend of d1 125 per, Ask an Expert

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Assume that a company will pay a dividend of D1 = $1.25 per share on its common stock at the end of the year, and that this 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 the company's current stock price (P0)?

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