Derive stock price, we know the treasury bond rate is .03

Derive stock price

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Reference no: EM131942908

We have the following information for Clough, Garcia and associates. The stock pays a $1 dividend and it will grow by 200% the first year, 100% the second year and 2% forever after that. The unlebered Bheta is 1, D/E is 60/40 and the tax rate is .4 Additionally, we know the treasury bond rate is .03 and the ROR of the S&P has been 10%. Derive the stock price of (C&G).

Reference no: EM131942908

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