About the valuation, Harrison Corporation is interested in

About the valuation

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Reference no: EM13811248

Valuation

Harrison Corporation is interested in acquiring Van Buren Corporation. Assume that the risk-free rate of interest is 3% and the market risk premium is 4%.

Van Buren currently expects to pay a year-end dividend of $1.65 a share (D1 = $1.65). Van Buren's dividend is expected to grow at a constant rate of 6% a year, and its beta is 1. What is the current price of Van Buren's stock? Round your answer to the nearest cent.

Reference no: EM13811248

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About the valuation : Harrison Corporation is interested in acquiring Van Buren Corporation. Assume that the risk-free rate of interest is 3% and the market risk premium is 4%. Van Buren currently expects to pay a year-end dividend of $1.65 a share (D1 = $1.65). Van Buren..

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