Question
A company currently pays a dividend of $2.75 per share (D 0 = $2.75). It is estimated that the company's dividend will grow at a
A company currently pays a dividend of $2.75 per share (D0 = $2.75). It is estimated that the company's dividend will grow at a rate of 25% per year for the next 2 years, and then at a constant rate of 5% thereafter. The company's stock has a beta of 1.95, the risk-free rate is 4.5%, and the market risk premium is 4%. What is your estimate of the stock's current price?
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Digital Business And Electronic Commerce
Authors: Bernd W Wirtz
1st Edition
3030634817, 9783030634810
