Twin City Knitting (TCK) pays a current dividend of $2.20, and dividends are expected to grow at a rate of 7% annually in the foreseeable future. The beta of TCK is 1.2. If the risk-free rate is 9.2% and the market risk premium is 6%, at what price would you expect TCK's common stock to sell?
A) $14.35
B) $33.63
C) $23.40
D) $25.04

Question

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The Answer of Twin City Knitting (TCK) pays a current dividend of $2.20, and dividends are expected to grow at a rate of 7% annually in the foreseeable future. The beta of TCK is 1.2. If the risk-free rate is 9.2% and the market risk premium is 6%, at what price would you expect TCK's common stock to sell?
A) $14.35
B) $33.63
C) $23.40
D) $25.04

Twin City Knitting (TCK) Pays a Current Dividend of $2