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

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A company currently pays a dividend of $2 per share. It is estimated that the company's dividend will grow at a rate of 20% per year for the next two years, and 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 the estimated stock price?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91768254

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