L’arancia Company just paid a dividend of $1.67 per share to its stockholders. Market analysts believe L’arancia Company

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

L’arancia Company just paid a dividend of $1.67 per share to its stockholders. Market analysts believe L’arancia Company

Post by answerhappygod »

L’arancia Company just paid a dividend of $1.67 per share to its
stockholders. Market analysts believe L’arancia Company will grow
by 19 percent next year, 13.75 percent the following year, and 13
percent the year after. Then, it is projected that L’arancia
Company will grow at a constant rate of 4.75 percent per year
indefinitely. The current rate of interest on risk-free asset is
2.51 percent, and the rate of return on market portfolio is 11.25
percent. L’arancia Company’s beta is estimated to be 1.09. What is
your estimate of the current market price of L’arancia Company’s
stock?
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Post Reply