Based on the following data for KLP stock, what is the implied beta for the stock?
Dividend just paid, D0, =$4
10-year Treasury bond yield=3%
Current market price, P0=$146.67
Market risk premium=10%
Constant dividend growth rate=10%
Assume that the stock is priced in equilibrium.
a. 1.0
b. 1.6
c. 1.3
d. 2.0
e. 0.7