The stock estimated price per share exactly two years

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Reference no: EM132012759

A stock will pay no dividends for the next 3 years. Four years from now, the stock is expected to pay its first dividend in the amount of $1.9. It is expected to pay a dividend of $3 exactly five years from now. The dividend is expected to grow at a rate of 7% per year forever after that point. The required return on the stock is 15%. The stock's estimated price per share exactly TWO years from now, P2 , should be $______.

Reference no: EM132012759

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