Determine the expected price for common stock

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Reference no: EM13950717

Simon Enterprises current common stock dividend (year 0) is $2.50 per share and is expected to continue growing at a rate of 5% per year for the foreseeable future. Currently the risk-free rate is 7.5% and the estimated market risk premium (i.e., km - rf) is 8.3%. Value Line has estimated Simon Enterprise's beta to be 1.10. Determine the expected price for Simon Enterprises common stock.

Reference no: EM13950717

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