A company currently pays a dividend of 2 per share d2 it is, Ask an Expert

Economics

A company currently pays a dividend of $2 per share (D=$2). It is estimated that the company’s dividend will grow at a rate of 20% per year for t the next 2 years, then at a constant rate of 7% thereafter. The company’s stock has a beta of 1.2, the risk-free rate is 7.5, and the market risk premium is 4%. What is your estimate of the stock’s current price?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91421720

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