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A company currently pays a divdend of $2 per share ,Do= $ 2. It is estimated that the company's dividend will grow at a rate of 20% per year for the...
A company currently pays a divdend of $2 per share ,Do= $ 2. It is estimated that the company's dividend will grow at a rate of 20% per year for the next two years.Then 7% and remain constant thereafter. The company stock has a beta equal to 1.2, the risk free rate is 7.5% and the market risk premium is 4%. What is your estimate of stock's current price?