The Francis Company Is Expected to Pay a Dividend of D₁

question 87

Multiple Choice

The 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 0.85,the market risk premium is 5.50%,and the risk-free rate is 4.00%.What is the company's current stock price? Do not round intermediate calculations.

• A) $49.53
• B) $54.21
• C) $46.73
• D) $47.66
• E) $51.40

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