Currently pays dividend, A company currently pays a

Currently pays dividend

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Reference no: EM131055573

A company currently pays a dividend of $3.25 per share (D0 = $3.25). It is estimated that the company's dividend will grow at a rate of 16% per year for the next 2 years, then at a constant rate of 7% thereafter. The company's stock has a beta of 1.15, the risk-free rate is 6%, and the market risk premium is 6%. What is your estimate of the stock's current price?

Reference no: EM131055573

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