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Google just paid a dividend of $8.41. Dividends and earnings are expected to grow 12% per year for the next two years before declining to
Google just paid a dividend of $8.41. Dividends and earnings are expected to grow 12% per year for the next two years before declining to the industry average of 3.1%. If the required return on Google stock is 12% and the risk free rate is 3.3%, what is a fair price for Google stock based on these calculations? (Do NOT include the currency symbol in your answer, and round your answer to 2 decimal places. So if your answer is $34.567, write 34.57.)
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