Zayn Inc. has a beta of 0.9. The risk-free return is equal to 2% and...
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Zayn Inc. has a beta of 0.9. The risk-free return is equal to 2% and the market risk premium is equal to 6%. Zayn share currently sells for $60 and it is expected to pay a dividend of $3 per share at the end of the year. Dividends are expected to grow at a constant rate, g.
Calculate the estimated share price in 6 years.
Note 1: You should calculate the required rate of return rs and the constant growth rate g first.
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