Evaluate the best estimate of the current stock price


Question:

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 is 12%. What is the best estimate of the current stock price?

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Finance Basics: Evaluate the best estimate of the current stock price
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