A company currently pays a dividend of 2 per share it is


A company currently pays a dividend of $2 per share. It is estimated that the company's dividend will grow at a rate of20% per year for the next two years, and then at a constant rate of 7% thereafter. The company's stock has a beta of 1.2, the risk-free rate is 7.5% and the expected market return is 14%. What is your estimate of the stock's current price?

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Financial Management: A company currently pays a dividend of 2 per share it is
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