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FinanceQ&A LibraryThe XYZ Company paid $1.95 dividend yesterday. Its dividend growth rate is expected to be constant at 21.90% for 2 years, after which dividends are expected to grow at a rate of 5.70% forever. Its required return (rs) is 13.55%. What is the best estimate of the current stock price? Round your answer to two decimal places.Start your trial now! First week only $4.99!*arrow_forward*

Question

The XYZ Company paid $1.95 dividend yesterday. Its dividend growth rate is expected to be constant at 21.90% for 2 years, after which dividends are expected to grow at a rate of 5.70% forever. Its required return (rs) is 13.55%. What is the best estimate of the current stock price?

Round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72.

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