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Please show steps. Check My Work (1 remaining) eBook Nonconstant Growth Valuation A company currently pays a dividend of $1.6 per share (Do = $1.6).
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Check My Work (1 remaining) eBook Nonconstant Growth Valuation A company currently pays a dividend of $1.6 per share (Do = $1.6). It is estimated that the company's dividend will grow at a rate of 24% per year for the next 2 years, and then at a constant rate of 7% thereafter. The company's stock has a beta of 1.1, the risk- free rate is 9.5%, and the market risk premium is 5.5%. What is your estimate of the stock's current price? Do not round intermediate calculations. Round your answer to the nearest centStep by Step Solution
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