The following information from Yahoo Finance is for Ford stock.
Forward (i.e., next quarter’s) expected earnings = $0.14/Qu.
Forward (i.e., next quarter’s) Dividend = $0.10/Qu.
Quarterly ROE: 7.29%
Quarterly required return: 2.75%
According to the Gordon Growth model, what should the price of Ford stock be today?
a) -$4.07
b) $4.49
c) $14.99
d) -$2.20