What is the best estimate of the stock current market

Reference no: EM13284020

Nachman Industries just paid a dividend of D0 = $1.32. Analysts expect the company's dividend to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The required return on this low-risk stock is 9.00%. What is the best estimate of the stock's current market value?

a. $42.65
b. $43.75
c. $41.59
d. $45.99
e. $44.87

Reference no: EM13284020

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