FIN 6446 – The Francis Company is expected to pay a dividend of D = $1.25

Subject: Business    / Finance
Question
The Francis Company is expected to pay a dividend of D = $1.25 per share at the end of the year, and that dividend is expected to grow at a constant rate of 6.00% per year in the future. The company’s beta is 1.55, the market risk premium is 5.50%, and the risk-free rate is 4.00%. What is the company’s current stock price?