Laframboise du Lac Inc. spent $7 billion on stock repurchases last year and also issued dividends in the amount of $2 billion last year. Distributions of this type are expected to grow by 8% per year for about 50 years.The company has an equity beta of 1.13 and the current risk-free rate and market risk premium are 2% and 9% respectively.Laframboise du Lac has 5 billion shares outstanding.What is your estimate for the share price?

Answer rating: 100% (QA)

To estimate the share price of Laframboise du Lac Inc we can use the dividend discount model DDM app... View the full answer