Thames Inc

Finance Feb 27, 2021

Thames Inc.'s most recent dividend was $2.6 per share (D₀ = $2.6). The dividend is expected to grow at a rate of 5% per year. The risk-free rate is 4% and the return on the market is 10%. The company's beta is 1.5

A) What is the required rate of return on the stock, k_s? (2 points)

B) What is the price of the stock today, P₀? (2 points)

C) What is the price of the stock three years from now, P₃? (2 points)

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