Question: Question Iii 1D E it] points Facebook has gone public by issuing equity. As an analyst for a bank, you've estimated that the company will
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Question Iii 1D E it] points Facebook has gone public by issuing equity. As an analyst for a bank, you've estimated that the company will have a Beta of 1.2. You know that Faceboolt just gave a dividend of $4.111] per share. You anticipate high growth of this dividend for the first few years. You predict that dividend will grow by 2D% for three years. After that, you anticipate growth to be a more modest 5% per year. The risk-free rate is 2% and and the average return of the market is 13%. What is the price of Faceboolt's stock? Answer: J
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