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A company currently pays a dividend of $4 per share (D0 = $4). It is estimated...

A company currently pays a dividend of $4 per share (D0 = $4). It is estimated that the company's dividend will grow at a rate of 15% per year for the next 2 years, and then at a constant rate of 5% thereafter. The company's stock has a beta of 1.1, the risk-free rate is 9.5%, and the market risk premium is 5.5%. What is your estimate of the stock's current price? Do not round intermediate calculations. Round your answer to the nearest cent.

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Please upvote if the ans is helfpul.In case of doubt,do comment.Thanks,

jeff jeffy answered 1 year ago
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