You estimate that Mobil Pro Corp will start paying dividends five (5) years from today

Finance Nov 18, 2020

You estimate that Mobil Pro Corp will start paying dividends five (5) years from today. At that time you estimate the dividend will be 2.1 (i.e. D5 = 2.1). You also expect the dividends to grow at a rate of 11.4% for the following 7 years (from t=6 to 12 inclusive). After that high growth period ends, the growth rate will fall to 5.3% and remain at 5.3% forever. What is your estimate of Mobil Pro Corp's stock price today if your required rate of return is 10.0%?

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