The Isberg Company just paid a dividend of $0.75 per share,and that dividend is expected to grow at a constant rate of 5.50% per year in the future.The company's beta is 1.65,the market risk premium is 5.00%,and the risk-free rate is 4.00%.What is the company's current stock price,P0? Do not round intermediate calculations.
A) $10.08
B) $11.72
C) $13.83
D) $12.66
E) $13.60
Correct Answer:
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