Question
a.The risk-free rate is 3.91% and the market risk premium is 9.08%. A stock with a of 1.59 just paid a dividend of $1.49. The
a.The risk-free rate is 3.91% and the market risk premium is 9.08%. A stock with a of 1.59 just paid a dividend of $1.49. The dividend is expected to grow at 22.11% for three years and then grow at 4.37% forever. What is the value of the stock?
b.The risk-free rate is 3.91% and the market risk premium is 9.08%. A stock with a of 1.59 just paid a dividend of $1.49. The dividend is expected to grow at 22.11% for three years and then grow at 4.37% forever. What is the value of the stock?
show the easiest way to solve using a ti-84 calculator if possible.
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