Stevens inc is growing quickly and is fairly risky stevens


Stevens, Inc. is growing quickly and is fairly risky. Stevens just paid its first dividend of 3.00, but the beta Stevens' stock is 2.6.

Stevens expect earnings and dividends to grow at 20% per year for the next two years, 15% for the following year and 6% per year thereafter. Treasury bills have a 2% annual return and the market risk premium is 10%. What is the value of a share of Steven's stock today?

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Financial Management: Stevens inc is growing quickly and is fairly risky stevens
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