Estimate the value of the firm stock assuming today

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FMD Inc., has a beta of 1.835 the annual risk-free rate of interest is currently 3%, and the required return on the market portfolio is 14%. The firm estimates that its future dividends (per share) will continue to increase at an annual compound rate consistent with that experienced over the 2013-2016 period: 2013 = $2.70, 2014 = $2.95, 2015 = $3.25, 2016 = $3.40. Estimate the value of the firm's stock assuming today is December 31, 2016.

Reference no: EM131606000

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