Calculate the company share price today

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A company's return is estimated to have a standard deviation of 20.00% and a correlation with the market portfolio of 0.35. The market portfolio in turn has a standard deviation of 14.00%. and an expected return of 6.23% and the risk-free interest rate is 1.25%. The company is expected to pay a dividend of SEK 2.12 per share in one year and the dividend is then expected to grow by 1.74% per year for all time to come. Assume that CAPM holds and calculate the company's share price today.

Reference no: EM133077807

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