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What is the equilibrium price of the company stock

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Problem 1: Hour SpyInc. just paid a dividend of $10.10 per share (i.e., D 0 =10.10) . The company's dividend payment is expected to grow at a rate of 3.25 % per year from year 1 to infinity. If the stock of Hour Spy, Inc. has an expected rate of return of 18.5% what is the equilibrium price of the company's stock?

1) $75.15

2) $70.88

3 ) $81.92

4 $68.38

5) $ 79.37

Reference no: EM132807858

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