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 7% thereafter. The company's stock has a beta of 1.05, the risk-free rate is 8%, and the market risk premium is 4%. What is your estimate of the stock's current price? Round your answer to the nearest cent

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Financial Management: Acompany currently pays a dividend of 375 per share d0
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