You are valuing the stock of High Tech Inc. You expect the dividend one-year from today to be $2.00 dividend, and you expect dividends to grow a rate of 15% each year for the next 8 years(t=2 to 9).  After that, dividends are expected to grow at a constant 3%.  

What would you estimate the stock price to be if the required rate of return is 10%?

Answer rating: 100% (QA)

To value the stock of High Tech Inc we can use the dividend discount model Stock price D1 r g where ... View the full answer