Problema company paid 165 dividend yesterday its dividend, Ask an Expert

Finance

Problem:

A company paid $1.65 dividend yesterday. Its dividend growth rate is expected to be constant at 22.40% for 2 years, after which dividends are expected to grow at a rate of 6.85% forever. Its required return (rs) is 10.55%.

Required:

Question 1: What is the best estimate of the current stock price? Explain comprehensively and provide step by step solution.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91147217

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