Aompany currently pays a dividend of 275 per share d0


Nonconstant Growth Valuation

A company currently pays a dividend of $2.75 per share (D0 = $2.75). It is estimated that the company's dividend will grow at a rate of 19% per year for the next 2 years, and then at a constant rate of 5% thereafter. The company's stock has a beta of 1.15, the risk-free rate is 7%, and the market risk premium is 3%. What is your estimate of the stock's current price? Round your answer to the nearest cent

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Financial Management: Aompany currently pays a dividend of 275 per share d0
Reference No:- TGS01286194

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