A company currently pays a dividend of 15 per share d0 15


A company currently pays a dividend of $1.5 per share (D0 = $1.5). It is estimated that the company's dividend will grow at a rate of 22% per year for the next 2 years, then at a constant rate of 7% thereafter. The company's stock has a beta of 1.3, the risk-free rate is 3.5%, and the market risk premium is 4%. 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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Financial Management: A company currently pays a dividend of 15 per share d0 15
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