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solve this question Part 2 1. A company currently pays a dividend of $2 per share (DO = $2). It is estimated that the company's
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Part 2 1. A company currently pays a dividend of $2 per share (DO = $2). It is estimated that the company's dividend will grow at a rate of 20% per year for the next 2 years, then at a constant rate of 7% thereafter. The company's stock has a beta of 1.2, the risk free rate is 7.5%, and the market risk premium is 4%. What is your estimate of the stock's current priceStep by Step Solution
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