Derive the stock price of pilana

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Reference no: EM13971922

We have the following information for the Pilana Company. The stock pays a $10 dividend, and it will grow by 100% the first year, 30% the second year and 3% forever   after that. The unlevered beta is 1, D/E is 60/40 and the tax rate is .3. Additionally, we know the Treasury bond rate is .08 and the ROR of the S&P has been 10%. Derive the stock price of Pilana

Reference no: EM13971922

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