Ackert Company’s last dividend was $3.14. The dividend growth rate is expected to be constant at 16% for 2 years, after which dividends are expected to grow at a rate of 6.9% forever.
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The firm’s required return (rs) is 11.0%. What is the best estimate of the current stock price? For more information on Stock Price Calculation check: https://en.wikipedia.org/wiki/Stock_valuation