6. Gurley Enterprises' stock has a required return of 15.40%. The company, which plans to pay a dividend of
$2.85 per share in 2019, anticipates that its future dividends will increase at an annual rate consistent with that experienced over the 2012-2018 period, when the following dividends were paid:
Div per Shr
1. If the risk-free rate is 5%, what is the risk premium on Gurley's stock?
2. Using the constant-growth model, estimate the value of Gurley's stock.
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