Problem:
QPT paid a $3 per share dividend yesterday. (D0=$3) The dividend is expected to grow at 7 percent per year for the foreseeable future. QPT has a beta of 1.6, a standard deviation of returns of 28 percent, and a required return of 19%.
Required:
Question: What is the value of a share of QPT common stock?
Note: Provide thorough explanation of the given question.