Problem:
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 1.65, the required return on the market is 10.50%, and the risk-free rate is 4.50%.
Required:
Question: What is the company's current stock price?
A. 10.92
B. 7.99
C. 9.30
D. 10.11
E. 10.41
Note: Explain in detail.