You expect a share of stock to pay dividends of $1.00, $1.25, and $1.50 in...
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You expect a share of stock to pay dividends of $1.00, $1.25, and $1.50 in each of the next 3 years You expect a share of stock to pay dividend of $1.00, $1.25 and $1.50 in each of the next three years. After three years, its dividend will grow at a constant rate of 3% per year. Assume the cost of capital of the company is 12%, what would be a reasonable estimate of the stock price based on dividend discount model?
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