The kummins engine company common stock has a beta of 0.9., Ask an Expert

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problem: The Kummins Engine Company common stock has a beta of 0.9. The current risk-free rate of return is 5% and the market risk premium is 8%. The CEO of the company is quoted in a press release as saying that the firm will pay a dividend of $0.80 per share in the coming year and expects the dividends to grow at a constant rate of 7% for the foreseeable future. Apply the constant growth model, determine the value of this stock?

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Basic Finance, Finance

Category:- Basic Finance
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