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A company has a market related =0.95 and the company pays a regular dividend of $0.50 quarterly. What is the value of the company's stock, if 300,000...
A company has a market related β=0.95 and the company pays a regular dividend of $0.50 quarterly. What is the value of the company's stock, if 300,000 shares are outstanding?
Above is question b, so additional info from question a) risk-free rate is 3%, market risk premium is 6%, what is required return on company's equity based on CAPM, and I got a required return of 5.85%.
Thinking I'll have to use P = (EPS/required return) + (NPVGO/#shares), but I don't know what else I need to calculate to do that.