The Francis Company is expected to pay a dividend of D1 = $1.25 per share at the end of the year,and that dividend is expected to grow at a constant rate of 6.00% per year in the future.The company's beta is 0.85,the market risk premium is 5.50%,and the risk-free rate is 4.00%.What is the company's current stock price? Do not round intermediate calculations.
A) $49.53
B) $54.21
C) $46.73
D) $47.66
E) $51.40
Correct Answer:
Verified
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