Value of the company common stock at present

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Weever Company's common stock now exhibits the following characteristics; the stock is increasing in value at the rate of 20 % per year, this is expected to continue for 3 years. At the end of year 3 the stocks growth will 'settle' into the industry average (constant growth) rate of 6% per year. Further, data external to the company show U.S. Treasury securities having a 3-year average yield of 3.9%, the most recent 10-year average yield on a broad average of stocks has been 12 percent, and the company's stock is 10 percent more variable than the market average. Finally, the most recent dividend paid by the company was $2.00. What is the value of the company's common stock at present?

Reference no: EM132538298

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