RobertA

B.) 39 dollars?


hkese Wrote:
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> Brandy Clark, CFA, has forecast that Aceler, In.
> will pay its first dividend two years from now in
> the amount of $1.25. For the following year she
> forecasts a dividend of $2.00 and expects
> dividends, to increase at an average rate of 7%
> for the foreseeable future after that. If the
> risk-free rate is 4.5%, the market risk premium is
> 7.5%, and Aceler's beta is 0.9, Clark would
> estimate the current value of Aceler shares as
> being cloest to:
>
> A. $37
> B. $39
> C. $47