Francis Company Is Expected to Pay a Dividend of D1

question 24

Multiple Choice

Francis Company is expected to pay a dividend of D1 = $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 1.15, the market risk premium is 5.50%, and the risk-free rate is 4.00%.What is the company's current stock price?

• A)$28.90
• B)$29.62
• C)$30.36
• D)$31.12
• E)$31.90

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