Question: I need help immediately please, before 11 pm. The risk-free rate is 1.89% and the market risk premium is 5.99%. A stock with a of

I need help immediately please, before 11 pm.

The risk-free rate is 1.89% and the market risk premium is 5.99%. A stock with a of 1.68 just paid a dividend of $2.06. The dividend is expected to grow at 20.33% for five years and then grow at 4.80% forever. What is the value of the stock?

Submit :Answer format: Currency: Round to: 2 decimal places.

Please show all steps in a simple format and ensure answer is correct. I am just learning. Thanks.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!