64. An analyst gathers the following data about a company and the market: Earnings per share in most recent year $2.00
Expected dividend growth rate 5.10%
Dividend payout ratio 60%
Stock’s beta 1.50
Market risk premium 5.60%
Risk-free rate 4.20%
Company’s weighted average cost of capital 12.00%
Using the dividend discount model, the company’s price per share is closest to:
A. $18.28.
B. $16.00.
C. $16.82.
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