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Everest Inc. is presently enjoying relatively high growth because of a surge in the demand...

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Accounting

Everest Inc. is presently enjoying relatively high growth because of a surge in the demand for its new product. Management expects earnings and dividends to grow at a rate of 35% for the next 2 years, 19.95% in year 3 and 4 and after which competition will probably reduce the growth rate in earnings and dividends to constant growth rate of 5.75%. The companys last dividend was $1.90, its beta is 1.15, the market risk premium is 6.25%, and the risk-free rate is 6.75%. What is the current price of the common stock?

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