estimating stock price a company

(20 Points) Choose a company from Yahoo Finance and find its most recent dividend per share. Assume that dividend growth rates are 10%, 8%, 7% for the 1st, 2nd and 3rd years, respectively, and 5% constant afterwards. The risk-free rate is 7%, market risk premium is 5% and stock beta is 1.5. Assume that all numbers are in the same currency units. a. What would be your estimate of the stock price of this company? b. What would be your estimate of the stock price for the following situations: i. The same non-constant dividend growth rates as stated above but constant dividend growth afterwards: 6%, the risk-free rate: 8%, market risk premium: 6%, stock beta: 2 ii. The same non-constant dividend growth rates as stated above but constant dividend growth afterwards: 4%, the risk-free rate: 6%, market risk premium: 4%, stock beta: 1 c. Comment on the results. (20 Points) Choose a company from Yahoo Finance and find its most recent dividend per share. Assume that dividend growth rates are 10%, 8%, 7% for the 1st, 2nd and 3rd years, respectively, and 5% constant afterwards. The risk-free rate is 7%, market risk premium is 5% and stock beta is 1.5. Assume that all numbers are in the same currency units. a. What would be your estimate of the stock price of this company? b. What would be your estimate of the stock price for the following situations: i. The same non-constant dividend growth rates as stated above but constant dividend growth afterwards: 6%, the risk-free rate: 8%, market risk premium: 6%, stock beta: 2 ii. The same non-constant dividend growth rates as stated above but constant dividend growth afterwards: 4%, the risk-free rate: 6%, market risk premium: 4%, stock beta: 1 c. Comment on the results