A company currently
pays a dividend of $3.25 per share (D0 = $3.25). It is
estimated that the company's dividend will grow at a rate of 23%
per year for the next 2 years, and then at a constant rate of 8%
thereafter. The company's stock has a beta of 0.8, the risk-free
rate is 7.5%, and the market risk premium is 5%. What is your
estimate of the stock's current price? Do not round intermediate
calculations. Round your answer to the nearest cent.
$
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