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What is your estimate of the stock current price

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Question - Non-constant Dividend Growth Valuation - A company currently pays a dividend of $2.6 per share (D0 = $2.6). It is estimated that the company's dividend will grow at a rate of 24% per year for the next 2 years, and then at a constant rate of 5% thereafter. The company's stock has a beta of 1.5, the risk-free rate is 8.5%, and the market risk premium is 5.5%. What is your estimate of the stock's current price?

Reference no: EM133106108

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