Maneesh 02 May 2020 at 15:54 PM

Sonier Products has been growing at a rate of 10% per year and expects this growth to continue and produce earnings per share of $4.00 next year. The firm has a dividend payout ratio of 35% and a beta value of 1.25. If the risk-free rate is 7% and the return on the market is 15%, what is the expected current market value of Sonier's common stock?
A) 28
B) 16
C) 14
D) 20