Estimation of current stock price

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Reference no: EM1360478

The Zumwalt Company is expected to pay a dividend of $2.25 per share at the end of the year, and that dividend is expected to grow at a constant rate of 5.00% per year in the future. The company's beta is 1.15, the market risk premium is 5.50%, and the risk-free rate is 4.00%. What is the current stock price?
a. $42.25
b. $43.31
c. $44.39
d. $45.50
e. $46.64

Reference no: EM1360478

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