Homework answers / question archive / GM is expected to pay a dividend of $2

GM is expected to pay a dividend of $2

Business

Share With

GM is expected to pay a dividend of $2.00 in the coming year. Dividends are expected to grow at the rate of 2% per year. The risk-free rate is 4% and the market risk premium is 5%. GM has a beta of 1.2. The value of the stock should be:

Group of answer choices

$40.00

$30.00

$20.00

$25.00