What is the company current stock price for heuser inc

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Reference no: EM132970419

Constant growth valuation: CAPM1

Problem 1: Heuser Inc. is expected to pay a year-end dividend of $4.20 per share (i.e. D = $4.20), and that dividend is expected to grow at a constant rate of 4.00% per year in the future. The company's beta is 0.80, the market risk premium is 5.00%, and the risk-free rate is 2.40%. What is the company's current stock price?

a. $175.00

b. $182.00

c. $218.75

d. $227.50

e. $240.00

Reference no: EM132970419

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