Estimate of mobil pro corp stock price

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You estimate that Mobil Pro Corp will start paying dividends five (5) years from today. At that time you estimate the dividend will be 2.1 (i.e. D5 = 2.1). You also expect the dividends to grow at a rate of 11.4% for the following 7 years (from t=6 to 12 inclusive). After that high growth period ends, the growth rate will fall to 5.3% and remain at 5.3% forever. What is your estimate of Mobil Pro Corp's stock price today if your required rate of return is 10.0%?

Reference no: EM132703620

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