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Past five years' dividends for Joker stock is $1.50, $1.65, $1.70, $1.60, and $1.75, respectively. | $1.75 is this year's dividends per share. The reported equity Beta for Joker is 0.8, recent market risk premium is 10% and risk-free rate is 4%.

(1) What is the geometric average growth rate?

(2) What is the K?

(3) Support Joker keep the constant perpetuity dividends growth rate, what would be today's stock price for Joker stock?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92404532

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