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A company currently pays a dividend of $3 per share (D0=$3 ). It is estmated that the company's dividend will grow at a rate of
A company currently pays a dividend of $3 per share (D0=$3 ). It is estmated that the company's dividend will grow at a rate of 25 cis per year for the next 2 .years and then at a constant rate of 8% thereafter. The company's stock has a beto of 1.3, the risk-free rate is 6.5%, and the market risk prem/um is 1.5%. What is your estimate of the stock's current price? Do not round intermediote calculations. Round your answer to the nearest cent
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