# Detailed Explanation To Current Stock Price

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The Zumwalt Company is expected to pay a dividend of $2.25 per share at the end of the year, and that dividend is expected to grow at a constant rate of 5.00% per year in the future. The company's beta is 1.15, the market risk premium is 5.50%, and the risk-free rate is 4.00%. What is the current stock price?

a. $42.25

b. $43.31

c. $44.39

d. $45.50

e. $46.64

https://brainmass.com/business/finance/detailed-explanation-current-stock-price-148503

#### Solution Preview

The current stock price is the present value of all dividends. Since the dividends grow at a constant ...

#### Solution Summary

The solution explains how to calculate the current stock price using the dividend discount model.

$2.49