Firm A has recently paid dividend of $ 14 per share . It is expected that firm A will grow by 15% for next six years and 5% thereafter. It is also known that firm A's beta is 1.5, risk free rate is 1%, and market risk premium is 6%. Estimate the stock value of firm A.

Answer rating: 100% (QA)

To estimate the stock value of Firm A we can use the dividend discount model DDM The DDM calculates ... View the full answer