The companys beta is 125 the required return on the market

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Schnusenberg Corporation just paid a dividend of D0 = $0.75 per share, and that dividend is expected to grow at a constant rate of 6.50% per year in the future. The company's beta is 1.25, the required return on the market is 10.50%, and the risk-free rate is 4.50%. What is the company's current stock price?

a. $14.52

b. $14.89

c. $15.26

d. $15.64

e. $16.03

Reference no: EM13477057

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