Problemthe sunny days company just paid a divident of 1 per, Ask an Expert

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Problem:

The Sunny Days Company just paid a divident of $1 per share, and that dividend is expected to grow at a constant rate of 5% per year in the future. The company's beta is 1.2, the market risk premium is 5%, and the risk-free rate is 3%.

Requirement:

Question: What is the company's current stock price?

19.25
21.00
22.75
24.50
26.25

Note: Please answer in proper manner and show all computations

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91173101

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