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Suppose we are given the following information for a firm:(M$) Cost of equity capital 11.58% Long run growth rate 3.8% Comprehensive income year +5
Suppose we are given the following information for a firm:(M$) Cost of equity capital 11.58% Long run growth rate 3.8% Comprehensive income year +5 10,775.25 Book value Year +5 22,334.57 Number of shares of stock outstanding in M 2100 They have projected 5 years of dividends as follows: Total Dividends 8,002.50 $ Year +4 8,075.36 $ Year +5 8,200.57 Year +1 7,575.20 $ Year +2 7,678.11 $ Year +3 What is the estimated stock price of the firm using the dividends valuation method? OA. $53.14 O B. $68.99 OC. $78.25 OD. $111.77
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