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Calculation of required rate of return and valuation of current stock price.

The Zumwalt Company is expected to pay a dividend of $2.25 per share at the end of the year, and that dividend is expected to grow at a constant rate of 5.00% 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?

Corporate Finance, Finance

  • Category:- Corporate Finance
  • Reference No.:- M9726553

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