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Business, 13.11.2019 20:31 jnannsbwnw4216

Adams and collin enterprises expect earnings and dividends to grow at a rate of 25% for the next 4 years, after the growth rate in earnings and dividends will fall to 3%. the company's last dividend was $1.25, its beta is 1.20, the market risk premium is 5.50%, and the risk- free rate is 3.00%. what is the current price of the common stock?
3. what is the intrinsic price of this company's stock?
4. if the stock is currently priced at $40.00, given your answer to question 3, would you purchase this security?

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