Fill This Form To Receive Instant Help
Homework answers / question archive / You are considering an investment in Keller Corp's stock, which is expected to pay a dividend of $2 a share at the end of the year and has a beta of 14
You are considering an investment in Keller Corp's stock, which is expected to pay a dividend of $2 a share at the end of the year and has a beta of 14.50. The risk-free rate is 19.20%, and the market risk premium is 6% Keller currently sells for $161 a share, and its dividend is expected to grow at some constant rate g. Assuming the market is in equilibrium, what does the market believe will be the stock price at the end of 3 years?
Already member? Sign In