The Jameson Company just paid a dividend of $0.75 per share, and that dividend is expected to grow at a constant rate of 5.50% per year in the future. The company's beta is 1.15, the market risk premium is 5.00%, and the risk-free rate is 4.00%. What is Jameson's current stock price, P0?
A. $18.62
B. $19.08
C. $19.56
D. $20.05
E. $20.55
Answer: A
Business
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