What is value of this stock if constant annual growth rate

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Burns Nuclear Power common stock has a beta of 0.8 and currently pays a dividend of $3. The US Treasury bill rate is 2.5% and the market risk premium is 9.5%. What is the value of this stock if a constant annual growth rate of 4% is expected in dividends and earnings? WHICH IS THE PROCEDURE TO SOLVE IT?

A) $51.15 B) $64.82 C) $73.17 D) $49.18 E) $76.10

Reference no: EM131520400

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