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Constant growth valuation: CAPM

Isberg Integrated Systems Inc. just paid a dividend of $0.75 per share, and that dividend is expected to grow at a constant rate of 4% per year in the future. The company's beta is 0.95, the market risk premium is 5%, and the risk-free rate is 2.25%. What is the company's current stock price?

$10.71

$18.75

$23.45

$25.00

$26.00

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92405981

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