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Calculate the ABC share price from the following data 4. Company ABC plans to grow at a rate of 30% per year for the next

Calculate the ABC share price from the following data

 

4. Company ABC plans to grow at a rate of 30% per year for the next 5 years; Y then, due to competition, it forecasts moderate growth (7% per year on a regular basis). indefinite). The market risk premium is 6%, the risk-free rate 5%, the beta 1.2 and the company just paid a dividend of $2.50.

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Calculations The dividend at the end of year 1 D1 can be calculated as follows D1 250 1 30 325 The d... blur-text-image

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