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
Posted: Tue Jan 18, 2022 12:57 pm
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.
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.