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A company currently pays a dividend of $2 per share, . It is estimated that the companys dividend will grow at a rate of 14%
A company currently pays a dividend of $2 per share, . It is estimated that the companys dividend will grow at a rate of 14% per year for the next 2 years, then the dividend will grow at a constant rate of 7% thereafter. The companys stock has a beta equal to 1.8, the risk-free rate is 4.5%, and the market risk premium is 4%. What is your estimate of the stocks current price?
use financial calculator and show the detail. Thanks!!!
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