Orwell building supplies' last dividend was $1.75. Its dividend growth rate is expected to be constant at 38.00% for 2 years, after which dividends are expected to grow at a rate of 6% forever. Its required return (rs) is 12%. What is the best estimate of the current stock price?

Estimated current stock price is $46.84

Step-by-step explanation:

First we have to find the value of dividend payment

Given

Yearly growth rate for next 2 years( )=38.00%

Growth after two years will 6% indefinitely

Estimate of current stock price is

=$46.84

Estimate of current stock price is =$46.84

child does not get an education so she can use the molla on junk

the expression (1.26)2t reveals the approximate rate of increases in the number of plants semiannually.

hope this : )