Business, 21.04.2020 18:33, Nataliepavon7

McGaha Enterprises expects earnings and dividends to grow at a rate of 25% for the next 4 years, after the growth rate in earnings and dividends will fall to zero, i. e., g = 0. The company's last dividend, D0, was $1.25, its beta is 1.20, the market risk premium is 5.50%, and the risk-free rate is 3.00%. What is the current price of the common stock? a. $27.89 b. $29.05 c. $26.77 d. $31.42 e. $30.21

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McGaha Enterprises expects earnings and dividends to grow at a rate of 25% for the next 4 years, aft...