The Lashgari Company is expected to pay a dividend of $1 per share at the end of the year, and that dividend is expected to grow at a constant rate of 5% per year in the future. The company's beta is 1.2, the market risk premium is 5%, and the risk-free rate is 3%. What is the company's current stock price?© BrainMass Inc. brainmass.com June 3, 2020, 10:11 pm ad1c9bdddf
Using the dividend discount model
Current Price = D1/(ke-g)
D1 = expected ...
The solution explains how to calculate the current stock price