What would be appropriate estimate of the stock price today

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A company is expected to pay a dividend of $1.02 per share one year from now and $1.97 in two years. You estimate the risk-free rate to be 4.7% per year and the expected market risk premium to be 5.8% per year. In two years, you expect the leading PE ratio to be 12. You also expect the earnings to be $4.7 in year 2 and $5.98 in year 3. The beta of the stock is 0.8. What would be an appropriate estimate of the stock price today?

Reference no: EM132023365

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