Current price per share of common stock


Wheeler, Inc., is presently in a stage of abnormally high growth because of the excess demand for widgets. The company expects earnings and dividends to grow at a rate of 20% for the next 4 years, after which time there will be no growth in earnings and dividends. The company's last dividend was $1.50. Wheeler has a beta of 1.6, the return on the market is currently 12.75%, and the risk-free rate is 4%. What should be the current price per share of common stock?

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Finance Basics: Current price per share of common stock
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