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mckennayoshz
mckennayoshz
17.09.2021 • 
Business

The board of directors of API, a relatively new electronics manufacturer, has decided to continue paying a common stock dividend to increase the attractiveness of the stock in the free market. The board plans to pay $3.50 per share in the coming year (i.e., next year) and anticipates that its future dividends will increase at an annual rate consistent with that experienced over the period from 2017 - 2020 (see below). The company currently has a beta of 1.2, the rate of return for the market is expected to be 10% and the risk-free rate is currently 2%. Given this scenario, what is the current value of API's common stock

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