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In: Accounting

You are analyzing the stock of Pizza Hub, an online pizza delivery company. Your estimate of...

You are analyzing the stock of Pizza Hub, an online pizza delivery company. Your estimate of the cost of equity is 16 percent. The most recent dividend is $0.20 per share. You expect dividends to grow 15 percent per year for three years and 8 percent per year thereafter. What is your estimate of the stock price?

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Expert Solution

We given below solution assuming that price to be computed for year when dividend growth of 15% is applicable

ekkarill92 answered 9 months ago
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