Answer:
64 because they are vertical angles
The current price of the stock given the dividend, cost of equity and growth rates is $46.90.
<h3>What is the current stock price?</h3>
Thw two-stage dividend growth model would be used to determine the value of the stock.
First stage:
- dividend in Y1 = 1.20x 1.12 = 1.344
- dividend in Y2 = 1.20 x 1.12^2 = 1.505
- dividend in Y3 = 1.20 x 1.12^3 = 1.69
Second stage:
Y3 = (1.69 X 1.06) / (0.095 - 0.06) = 51.059
Find the present value of these cash flows
(1.344 / 1.095) + (1.505 / 1.095²) + (1.69 / 1.095³) + (51.059/1.095³) = $46.90
To learn more about the two stage dividend model, please check: brainly.com/question/26564273
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