What is the estimated stocks current price

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Reference no: EM13731333

Company currently pays a dividend of $1.25 per share. It is estimated that the company's dividend will grow at a rate of 25% per year for the next 2years, then at a constant rate of 7% thereafter. The company's stock has a beta of 1.3, the risk-free rate is 7.5%, and the market risk premium is 5%. What is the estimated stock's current price?

Reference no: EM13731333

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