A company has just paid a dividend of $ 2 per share, D0=$ 2 . It is estimated that the company's dividend will grow at a
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A company has just paid a dividend of $ 2 per share, D0=$ 2 . It is estimated that the company's dividend will grow at a
A company has just paid a dividend of $ 2 pershare, D0=$ 2 . It is estimated that thecompany's dividend will grow at a rate of 16 % percent per year forthe next 2 years, then the dividend will grow at a constant rate of6 % thereafter. The company's stock has a beta equal to 1.4, therisk-free rate is 4.5 percent, and the market risk premium is 4percent. What is your estimate of the stock's current price? Roundyour answer to two decimal places.