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AWE INC's divdend growth rate is expected to be 20% per year for the next 3 years and zero percent afterwards. The last divdend, D0
AWE INC's divdend growth rate is expected to be 20% per year for the next 3 years and zero percent afterwards. The last divdend, D0 was $1 and the beta of the stock is 1. The market risk premium is 8%, and the risk-free rate is 2%. What is the expected price of the stock?
a. $18.81
b. $20.77
c. $17.76
d. $19.98
e. $16.56
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