How JustAnswer Works:
• Ask an Expert
• Get a Professional Answer
• 100% Satisfaction Guarantee
Ask Chris M. Your Own Question
Chris M., M.S.W. Social Work
Category: Homework
Satisfied Customers: 2788
Experience:  Master's Degree, strong math and writing skills, experience in one-on-one tutoring (college English)
22285537
Type Your Homework Question Here...
Chris M. is online now

# A company currently pays a dividend of \$2 per share Do \$2.

This answer was rated:
A company currently pays a dividend of \$2 per share Do= \$2. It is estimated that the company’s dividend will grow at a rate of 20% per year for the next two years, then the dividend will grow at a constant rate of 7% thereafter. The company’s stock has a beta equal to 1.2, the risk-free rate is 7.5% and market risk premium is 4%. What is your estimate of the stock’s current price?
THIS ANSWER IS LOCKED!

You need to spend \$3 to view this post. Add Funds to your account and buy credits.
Chris M. and 3 other Homework Specialists are ready to help you