Hamilton Landscaping's dividend growth rate is expected to be 25% in the next year, drop to...

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Hamilton Landscaping's dividend growth rate is expected to be 25% in the next year, drop to 12% from Year 1 to Year 2, and drop to a constant 3% after Year 2 and all subsequent years. Hamilton has just paid a dividend of $2.95 and its stock has a required return of 11.5%. a. What is Hamilton's estimated stock price today? Do $2.95 11.5% 90,1 25% Short-run g; for Year 1 only. 91,2 12% Short-run g; for Year 2 only. GL 3% Long-run g; for Year 3 and all following years. g 25% 12% 3% + Year Dividend 0 1 3 PV of dividends and PV of horizon value = Po = D3 = Horizon value = P- a. 2 What is Hamilton's estimated stock price for Year 1? P1 P P1 P2 + D2 (1+rs) Hamilton Landscaping's dividend growth rate is expected to be 25% in the next year, drop to 12% from Year 1 to Year 2, and drop to a constant 3% after Year 2 and all subsequent years. Hamilton has just paid a dividend of $2.95 and its stock has a required return of 11.5%. a. What is Hamilton's estimated stock price today? Do $2.95 11.5% 90,1 25% Short-run g; for Year 1 only. 91,2 12% Short-run g; for Year 2 only. GL 3% Long-run g; for Year 3 and all following years. g 25% 12% 3% + Year Dividend 0 1 3 PV of dividends and PV of horizon value = Po = D3 = Horizon value = P- a. 2 What is Hamilton's estimated stock price for Year 1? P1 P P1 P2 + D2 (1+rs)