- +1-530-264-8006
- info@tutorsglobe.com

A company currently pays a dividend of 3 per share d0 3 it

Non constant Growth Valuation

A company currently pays a dividend of $3 per share (D0 = $3). It is estimated that the company's dividend will grow at a rate of 16% per year for the next 2 years, then at a constant rate of 7% thereafter. The company's stock has a beta of 1.05, the risk-free rate is 6.5%, and the market risk premium is 4%. What is your estimate of the stock's current price? Round your answer to the nearest cent.

$

Expected delivery within 24 Hoursrs

18,76,764

Questions

Asked

21,311

Experts

9,67,568

Questions

Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment2015 © Tutors Globe. All rights reserved.

## Q : Determine the amount of interest the bank would make on

the following are three one-year ldquodiscountrdquo loans that a bank might offer to the customerloan