The Ramirez Company current dividend was $1.90. Its dividend will grow by 6%, 7%, 8% and 9% for the first 4 years. And then, dividends to grow at a rate of 5% forever. It's required return is 15%. 1- what is the estimated stock price at year 4? 2- what is the estimate of stock price at year 0?

Answer rating: 100% (QA)

To estimate the stock price at year 4 and year 0 we can use the dividend discount model DDM The DDM ... View the full answer