Question
The Ramirez Company's last dividend was $1.75. Its dividend growth rate is expected to be constant at 24% for 2 years, after which dividends are
The Ramirez Company's last dividend was $1.75. Its dividend growth rate is expected to be constant at 24% for 2 years, after which dividends are expected to grow at a rate of 6% forever. Its required return (rS) is 12%. What is the best estimate of the current stock price?
| a. | $52.47 | |
| b. | $41.98 | |
| c. | $31.90 | |
| d. | $36.94 | |
| e. | $45.34 |
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