Estimate of current stock price-ramirez company


The Ramirez Company's last dividend was $1.75. Its dividend growth rate is expected to be constant at 25% for 2 years, after which dividends are expected to grow at a rate of 6% forever. Its required return (r) is 12%. What is the best estimate of the current stock price?

A. 41.58
B. 42.64
c. 43.71
d. 44.80
e. 45.92

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Finance Basics: Estimate of current stock price-ramirez company
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