What is the price of Company A's stock.
We know company A pay dividend twice a year. And its beta=1.5
Government bond's Coupon is 8.8 and Yield is 5%(which one you should use?)
Last year company A paid two dividend 0.33, 0.32.
it's stock has a constant growth rate is 6 % pa (immediately).
What's is price of this stock? using Constant dividend model