baseball1525
baseball1525
18.11.2020 • 
Mathematics

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 16% per year for the next 2 years, and then at a constant rate of 8% thereafter. The company's stock has a beta of 1.4, the risk-free rate is 9%, and the market risk premium is 5%. What is your estimate of the stock's current price? Do not round intermediate calculations. Round your answer to the nearest cent.

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