Question: Dont round use four decimal places until the final answer. A company currently pays a dividend of $3 per share (D 0 = $3). It

Dont round use four decimal places until the final answer.

A company currently pays a dividend of $3 per share (D₀= $3). It is estimated that the companys dividend will grow at a rate of 10% per year for the next 2 years, and then at a constant rate of 5% thereafter. The companys stock has a beta of 35, the risk-free rate is 4% and the market risk premium is 2%. What is your estimate of the stocks current price?

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