Illustrate what is the best estimate of current stock price

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Q. The Ramirez Industry's last dividend was $1.75. Its dividend growth rate is expected to be constant at 25% for 2 years, after which dividends are expedited to grow at a rate of 6% forever. Its required return (Rs) is 12%. Illustrate what is the best estimate of the current stock price?

Reference no: EM13110880

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