Tames incs most recent dividend was 275 per share ie d0


Thames Inc.'s most recent dividend was $2.75 per share (i.e., D0 = $2.75). The dividend is expected to grow at a rate of 3% per year. The risk-free rate is 6% and the equity market risk premium is 5%. The company's beta is 1.3. Calculate the price of the stock today, assuming that the market is in equillibrium.

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Business Economics: Tames incs most recent dividend was 275 per share ie d0
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