What is the stock price and the discount rate

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The company has just paid dividend of $1.2 per share. Analyst expect that the company will not pay dividend in the following 2 years. After 2 years the dividend are expect to return to it current level for 3 years, after which it will grow at the constant rate of 5%. During the estimation period you expect that risk profile of the company will change.

Currently, the require rate of return is 10%. After which , the require rate of return is 12%.

What is the stock price and the discount rate used to estimate stock price in the year 05?

What is the stock value at current time?

Reference no: EM132293108

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