Author Question: Assume that the stock of Perry Corporation has just paid an annual dividend of $5, and that this ... (Read 40 times)

pragya sharda · **on:** Apr 25, 2021

Assume that the stock of Perry Corporation has just paid an annual dividend of $5, and that this dividend is expected to grow for the next 2 years at an annual growth rate of 20%, and then grow indefinitely at an annual growth rate of 10%. If the risk-free rate is 5%, the expected return on the market is 15%, and the firm's beta is 0.80, how much should you be willing to pay for this stock?
◦ $203.28
◦ $217.70
◦ $256.81
◦ $315.09
◦ $360.25

sarah_brady415 · **Reply #1 on:** Apr 25, 2021

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