Its required return rs is 1050 what is the best estimate of


The XYZ Company paid $1.85 dividend yesterday. Its dividend growth rate is expected to be constant at 23.80% for 2 years, after which dividends are expected to grow at a rate of 5.25% forever. Its required return (rs) is 10.50%. What is the best estimate of the current stock price?

Solution Preview :

Prepared by a verified Expert
Finance Basics: Its required return rs is 1050 what is the best estimate of
Reference No:- TGS02268512

Now Priced at $10 (50% Discount)

Recommended (90%)

Rated (4.3/5)