A companys currently pays a dividend of $2 per share. Its estimated that the companys dividend will grow at a rate of 20% per year for the next 2 years, then at a constant rate of 7% thereafter. The companys 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 stocks current price?
Paper#34189 | Written in 18-Jul-2015Price : $22