What is the best estimate of the current stock price

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1. Estes Company’s last dividend was $2.25. Its dividend growth rate is expected to be constant at 13% for 3 years, after which dividends are expected to grow at a rate of 8% forever. Its required return (rs) is 11%. What is the best estimate of the current stock price?

2. A loan is amortized over 5 years, with monthly payments at a nominal rate of 8.5% compounded monthly. The first payment is $1000, paid one month from the date of the loan. Each succeeding monthly payment will be 3% lower than the prior one. What is the outstanding balance immediately after the 30th payment is made?

Reference no: EM131989676

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