What is your estimate of the stock current price

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Reference no: EM131552579

Nonconstant Growth Valuation A company currently pays a dividend of $1 per share (D0 = $1). It is estimated that the company's dividend will grow at a rate of 23% per year for the next 2 years, and then at a constant rate of 7% thereafter. The company's stock has a beta of 1.7, the risk-free rate is 7.5%, and the market risk premium is 4%. What is your estimate of the stock's current price? Do not round intermediate calculations. Round your answer to the nearest cent.

Reference no: EM131552579

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