Widget Manufacturers Inc. has just paid a dividend of $3 per share. Dividends are expected to grow at 10.00% per year for the next 2 years, 6.00% the third year, and 3.00% each year thereafter. Widget's stock's beta is 0.90, while the risk-free rate is 3.20% per year and the market risk premium is 6.00% per year. 

Based on this information, calculate the price per share of Widget's stock.

Answer rating: 100% (QA)

To calculate the price per share of Widgets stock we can use the dividend discount model ... View the full answer