Question: please answer in 25 min To Increase the equity portion of your portfolio, you are analyrine the stock of firm my, Inc. The fim has

 please answer in 25 min To Increase the equity portion of
please answer in 25 min

To Increase the equity portion of your portfolio, you are analyrine the stock of firm my, Inc. The fim has just paid a dividend of $254. You have looked at the historical financial statements of the firm and have identified that it is a market leader in its industry and will remain so for the next few years. Your analyes and forecasts suggest that the industry will grow by 63 next year, Howevet, being a market leader. WYYs cagh flows, including the dividends paid, will grow at a rate of 25% next year and then 30 for the subsequent two years. After that you expect the consetitor to catch up. driving the firm's growth rate to an industry average of 4% per ytar forever. To account for the firmis rithiness, you think a discount rate of 12% is appropriate. Based on your anahis at what price should the stock of YYy be tradine? 550.44 None of the above 560.61 581.41 359599

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