Estimate of the stock current price

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A company currently pays a dividend of $2.2 per chare (Do=$2.2). It is estimated that the company's dividend will grow at a rate of 16% per year for the next 2 years, and then at a constant rate of 5% thereafter. The company's stock has a beta of 1.5, the risk-free rate is 9%, and the market risk premium is 5.5%. What is your estimate of the stock's current price. Do not round intermediate calculations. Round answer to nearest cent.

Reference no: EM132951586

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