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Business, 17.08.2019 19:20 jonloya264

Acompany currently pays a dividend of $2.00 per share (i. e., d0=$2.0). it is estimated that company's dividend will grow at a rate of 20% per year for the next three years, and the the dividend will grow at a constant rate of 4% thereafter. the company's stock has a beta of 1.5, the risk-free rate is 6%, and the market return is 12.50%. what is your estimate of the company's stock price at the end of year 3 (i. e., p3)?

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Acompany currently pays a dividend of $2.00 per share (i. e., d0=$2.0). it is estimated that company...

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