7. A company recently paid a dividend of $1.20 per share. It is estimated that the company’s dividend will grow at the rate of 15% per year for the next 5 years, then at a constant rate of 7% a year thereafter. The required return on this company is 8.80%, what is the estimated stock price today?(8)

Answer rating: 100% (QA)

To find the estimated stock price today we will use the dividend discount model DDM which calculates ... View the full answer