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Part 1: The risk-free rate is 3.51% and the market risk premium is 6.10%. A stock with a of 1.57 just paid a dividend of
Part 1: The risk-free rate is 3.51% and the market risk premium is 6.10%. A stock with a of 1.57 just paid a dividend of $2.73. The dividend is expected to grow at 24.45% for three years and then grow at 3.19% forever. What is the value of the stock?
Part 2: The risk-free rate is 3.47% and the market risk premium is 5.32%. A stock with a of 1.49 just paid a dividend of $2.89. The dividend is expected to grow at 24.85% for five years and then grow at 3.42% forever. What is the value of the stock?
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