What is estimate of the stock current price

Reference no: EM131793842

Question: A company has just paid a dividend of $ 2 per share, D₀ = $2. It is estimated that the company's dividend will grow at a rate of 17 % percent per year for the next 2 years, then the dividend will grow at a constant rate of 4 % thereafter. The company's stock has a beta equal to 1.4, the risk-free rate is 4.5 percent, and the market risk premium is 4 percent. What is your estimate of the stock's current price? Round your answer to two decimal places.

Reference no: EM131793842

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