Question

A company currently pays a dividend of $3.5 per share (D0 = $3.5). It is estimated that the company's dividend will grow at a rate of 22% per year for the next 2 years, then at a constant rate of 5% thereafter. The company's stock has a beta of 1.9, the risk-free rate is 7.5%, and the market risk premium is 6%. What is your estimate of the stock's current price? Do not round intermediate calculations. Round your answer to the nearest cent.

Answer #1

A company currently pays a dividend of $2.8 per share (D0 =
$2.8). It is estimated that the company's dividend will grow at a
rate of 23% per year for the next 2 years, and then at a constant
rate of 5% thereafter. The company's stock has a beta of 1.3, the
risk-free rate is 7.5%, and the market risk premium is 3.5%. What
is your estimate of the stock's current price? Do not round
intermediate calculations. Round your answer...

A company currently pays a dividend of $2 per share
(D0 = $2). It is estimated that the company's dividend
will grow at a rate of 19% per year for the next 2 years, and then
at a constant rate of 6% thereafter. The company's stock has a beta
of 1.2, the risk-free rate is 7.5%, and the market risk premium is
3.5%. What is your estimate of the stock's current price? Do not
round intermediate calculations. Round your answer...

A company currently pays a dividend of $2.4 per share (D0 =
$2.4). It is estimated that the company's dividend will grow at a
rate of 24% per year for the next 2 years, and then at a constant
rate of 7% thereafter. The company's stock has a beta of 1.2, the
risk-free rate is 7.5%, and the market risk premium is 3%. What is
your estimate of the stock's current price? Do not round
intermediate calculations. Round your answer...

Nonconstant Dividend Growth Valuation A company currently pays a
dividend of $3.6 per share (D0 = $3.6). It is estimated that the
company's dividend will grow at a rate of 15% per year for the next
2 years, and then at a constant rate of 7% thereafter. The
company's stock has a beta of 1.2, the risk-free rate is 7.5%, and
the market risk premium is 3.5%. What is your estimate of the
stock's current price? Do not round intermediate...

A company currently pays a dividend of $3 per share (D0 = $3).
It is estimated that the company's dividend will grow at a rate of
25% per year for the next 2 years, and then at a constant rate of
8% thereafter. The company's stock has a beta of 1.6, the risk-free
rate is 8%, and the market risk premium is 4%. What is your
estimate of the stock's current price? Do not round intermediate
calculations. Round your answer...

A company currently pays a dividend of $1.5 per share (D0 =
$1.5). It is estimated that the company's dividend will grow at a
rate of 24% per year for the next 2 years, and then at a constant
rate of 8% thereafter. The company's stock has a beta of 1.75, the
risk-free rate is 5.5%, and the market risk premium is 3%. What is
your estimate of the stock's current price? Do not round
intermediate calculations. Round your answer...

A company currently pays a dividend of $2.25 per share (D0 =
$2.25). It is estimated that the company's dividend will grow at a
rate of 25% per year for the next 2 years, then at a constant rate
of 6% thereafter. The company's stock has a beta of 1, the
risk-free rate is 7%, and the market risk premium is 6%. What is
your estimate of the stock's current price? Do not round
intermediate calculations. Round your answer to...

A company currently pays a dividend of $2 per share
(D0 = $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 a
constant rate of 7% thereafter. The company's stock has a beta of
1.85, the risk-free rate is 6%, and the market risk premium is 4%.
What is your estimate of the stock's current price? Do not round
intermediate calculations. Round your answer to...

A company currently pays a dividend of $3 per share
(D0 = $3). It is estimated that the company's dividend
will grow at a rate of 24% per year for the next 2 years, and then
at a constant rate of 7% thereafter. The company's stock has a beta
of 0.8, the risk-free rate is 8%, and the market risk premium is
6%. What is your estimate of the stock's current price? Do not
round intermediate calculations. Round your answer...

A company currently pays a dividend of $1.2 per share
(D0 = $1.2). It is estimated that the company's dividend
will grow at a rate of 21% per year for the next 2 years, and then
at a constant rate of 7% thereafter. The company's stock has a beta
of 1.1, the risk-free rate is 9%, and the market risk premium is
6%. What is your estimate of the stock's current price? Do not
round intermediate calculations. Round your answer...

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