Orwell building supplies' last dividend was $1.75. Its dividend growth rate is expected to be constant at 38.00% for 2 years, after which dividends are expected to grow at a rate of 6% forever. Its required return (rs) is 12%. What is the best estimate of the current stock price?

Estimated current stock price is $46.84

Step-by-step explanation:

First we have to find the value of dividend payment

Given

Yearly growth rate for next 2 years( )=38.00%

Growth after two years will 6% indefinitely

Estimate of current stock price is

=$46.84

Estimate of current stock price is =$46.84

54.864 meters

step-by-step explanation:

1/2(2*4)=6 $$- agahajakanajak