A firm had EPS of $5.10 and paid dividends of $2.04 (think payout rate). The firm has a ROA of 12% and a ROE of 15%. The market earns 13% and T-bills…

A firm had EPS of $5.10 and paid dividends of $2.04 (think payout rate).

The firm has a ROA of 12% and a ROE of 15%.

The market earns 13% and T-bills earn 4%. The stock’s beta is 1.05.

What is the price of the stock?

$49.97

$54.06

$55.59

$62.68