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A company currently pays a dividend of $3 per share (Do = $3). It is estimated that the company's dividend will grow at a rate
A company currently pays a dividend of $3 per share (Do = $3). It is estimated that the company's dividend will grow at a rate of 22% per year for the next 2 years and then at a constant rate of 5% thereafter. The company's stock has a beta of 1.3, the risk-free rate is 8%, and the market risk premium is 5%. What is your estimate of the stock's current price? Do not round intermediate calculations. Round your answer to the nearest cent. $ 171.08
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