Explain what is the value of the stock

Reference no: EM13203893

A common Stock pays an annual dividend per share of $1.60. The risk-free rate is 5 percent and the risk premium for the stock is 4 percent. If the annual dividend is expected to reemain at $1.60 per share, What is the value of the stock?

a. $17.18

b. $32.00

c. $40

d. none of the above

Reference no: EM13203893

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