Constant growth valuation: CAPM
Isberg Integrated Systems Inc. just paid a dividend of $0.75 per share, and that dividend is expected to grow at a constant rate of 4% per year in the future. The company's beta is 0.95, the market risk premium is 5%, and the risk-free rate is 2.25%. What is the company's current stock price?
$10.71
$18.75
$23.45
$25.00
$26.00