What price should the companys stock sell

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Reference no: EM13972023

The Island Hotel Company, Inc. just paid a dividend of $1.50 per share, and that dividend is expected to grow at a constant rate of 5.00% per year in the future. The company's beta is 1.95, the market risk premium is 6.25%, and the risk-free rate is 2.50%. Using CAPM, at what price should the company's stock sell?

Reference no: EM13972023

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