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You are charged with the valuation of Hurst Companys stock. You have access to the following information: Hurst dividends are expected to grow at a
You are charged with the valuation of Hurst Companys stock. You have access to the following information: Hurst dividends are expected to grow at a rate of 10% for the next three years, after which growth will taper to a constant rate of 5%. Hursts beta is 1.5, the current yield on Treasury bills is 3% and the return on the market is 7%. Hurst Company recently paid a dividend of $2. What is the stocks current price?
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