The stock KZ has an equity beta of 1.8. The market risk premium is 5% and the current risk-free rate is 3%. The company

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answerhappygod
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The stock KZ has an equity beta of 1.8. The market risk premium is 5% and the current risk-free rate is 3%. The company

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The stock KZ has an equity beta of 1.8. The market risk premium
is 5% and the current risk-free rate is 3%. The company is going to
pay the following dividends for the next 4 years: $12 for year 1,
$9 for year 2, $6 for year 3 and $2 for year 4. Afterwards, it
would maintain a 5% growth rate in dividends forever. Compute the
maximum price you would pay for this stock today.
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