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15. Problem 8-12 (Nonconstant Growth Stock Valuation) Nonconstant Growth Stock Vatuation Assume that the average...

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15. Problem 8-12 (Nonconstant Growth Stock Valuation) Nonconstant Growth Stock Vatuation Assume that the average firm in your company's industry is expected to grow at a constant rate of 6W and that its dividend yieid is 5%. Your company is about as risky as the average firm in the industry and just paid a dividend (D3) of $2.25. You expect that the growth rate of dividends wil be 50% during the firs year (Go. = 50%) and 30% during the wecond vear (91,2=30%). Atter Year 2 , dividend growth will be constant at 6\%. What is the required rate of retum on your company's stock? What is the estimated value per share of your firm's steck Do not round imenmecate calculations. Round the monetary value to the nearest cent and percentage value to the nearest whole number

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