Acompany currently pays a dividend of 375 per share d0


A company currently pays a dividend of $3.75 per share (D0 = $3.75). It is estimated that the company's dividend will grow at a rate of 21% per year for the next 2 years, then at a constant rate of 6% thereafter. The company's stock has a beta of 1.4, the risk-free rate is 5%, and the market risk premium is 5%. What is your estimate of the stock's current price? Round your answer to the nearest cent.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Acompany currently pays a dividend of 375 per share d0
Reference No:- TGS01084716

Expected delivery within 24 Hours