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The following information is given for a stock. Using a dividend discount model, what is the price for this stock? Beta Equity: 2 Market Premium:3%

The following information is given for a stock. Using a dividend discount model, what is the price for this stock?

Beta Equity: 2

Market Premium:3%

Risk free rate =1 %

Current EPS=$3

EPS growth rate for the first 5 years: 3%

EPS growth after 5 years: 1%

Payout for the first 5 years: 50%

Payout after 5 years: 40%

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