You are analyzing the stock of Pizza Hub, an online pizza delivery company. Your estimate of the cost of equity is 16 percent. The most recent dividend is $0.20 per share. You expect dividends to grow 15 percent per year for three years and 8 percent per year thereafter. What is your estimate of the stock price?

Answer rating: 100% (QA)

To estimate the stock price of Pizza Hub we can use the Dividend Discount Model DDM which values a s... View the full answer