What is the stock price of philadelphia corporation


Question:

Philadelphia Corporation's stock recently paid a dividend of $2.00 per share (D0 = $2), and the stock is in equilibrium. The company has a constant growth rate of 5 percent and a beta equal to 1.5. The required rate of return on the market is 15 percent, and the risk-free rate is 7 percent. What is the stock price of Philadelphia Corporation?

Solution Preview :

Prepared by a verified Expert
Finance Basics: What is the stock price of philadelphia corporation
Reference No:- TGS02080699

Now Priced at $20 (50% Discount)

Recommended (97%)

Rated (4.9/5)