Problemthe ackert companys last dividend was 155 the, Ask an Expert

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Problem:

The Ackert Company's last dividend was $1.55. The dividend growth rate is expected to be constant at 1.5% for 2 years, after which dividends are expected to grow at a rate of 8.0% forever. The firm's required return (rs) is 12.0%.

Required:

Question: What is the best estimate of the current stock price?

a.37.05

b.38.16

c.39.30

d.40.48

e.41.70

Note: Provide support for rationale.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91169889

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