What is your estimate of the stocks current price

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A company currently pays a dividend of $2.75 per share (D0 = $2.75). It is estimated that the company's dividend will grow at a rate of 15% per year for the next 2 years, then at a constant rate of 5% thereafter. The company's stock has a beta of 1.2, the risk-free rate is 3.5%, and the market risk premium is 6%. What is your estimate of the stock's current price?

Reference no: EM13808652

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