Find the estimate of stock-s current price


The stock presently pays the dividend of $3.90 per share (D0 = $3.90). It is evaluated that company's dividend will grow at the rate of 22.5% per year for next two years, then at the constant rate of 6.60% thereafter. Company's stock has the beta of 1.70, risk-free rate is 8.25%, and market risk premium is 10.50%. Find the estimate of stock's current price?

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Mathematics: Find the estimate of stock-s current price
Reference No:- TGS0861721

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