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Finding stock current market value? - general stock market

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Old 03-20-2010, 04:21 AM
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Join Date: Oct 2009
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Default Finding stock current market value?

A company just paid a dividend of D=$4.75. Analysts expect the company's dividend to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The required return on this low-risk stock is 9.00%. What is the best estimate of the stock's current market value?
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