A company currently pays a dividend of $1.8 per share (D0 = $1.8). It is estimated that the company's dividend will grow
Posted: Thu May 05, 2022 8:17 am
A company currently pays a dividend of $1.8 per share
(D0 = $1.8). It is estimated that the company's
dividend will grow at a rate of 16% per year for the next 2 years,
and then at a constant rate of 8% thereafter. The company's stock
has a beta of 1.3, the risk-free rate is 8%, and the market risk
premium is 4.5%. What is your estimate of the stock's current
price? Do not round intermediate calculations. Round your answer to
the nearest cent.
(D0 = $1.8). It is estimated that the company's
dividend will grow at a rate of 16% per year for the next 2 years,
and then at a constant rate of 8% thereafter. The company's stock
has a beta of 1.3, the risk-free rate is 8%, and the market risk
premium is 4.5%. What is your estimate of the stock's current
price? Do not round intermediate calculations. Round your answer to
the nearest cent.