Best estimate of the stocks current market-value


Nachman Industries just paid a dividend of D0 = $1.32. Analysts expect the company's dividend to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in year 3 and thereafter. The required return on this low risk stock is 9%. What is the best estimate of the stock's current market value?

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Accounting Basics: Best estimate of the stocks current market-value
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