What is the company current stock price

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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 b = 1.15, the market return rM = 10%, and the risk-free rate rRF = 4.00%. What is the company's current stock price? (Hint: use the Capital Asset Price Model to calculate the required return rs and then use the constant growth stock model to find the stock price)

Reference no: EM131187894

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