Estimated of the stock current price


A company currently pays a dividend of $2 per share (Do=2). It is estimated that the company's dividend will grow at a rate of 20% per year for the next 2 years, then at constant rate of 7% thereafter. The company's stock has a beta of 1.2 and the Market risk premium is 4%. what is your estimated of the stock's current price?

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Finance Basics: Estimated of the stock current price
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