00:01
Okay, so we're going to be looking at the stock price and trying to determine stock price given the information that is provided.
00:12
So we're going to start off with the information provided as to do the dividend, the current dividend that is being offered.
00:25
And the growth is projected to be 20 % per year.
00:35
That is for two years and then 7 % constant thereafter.
00:44
Important information.
00:47
What is also given is the beta.
00:50
It's given as 1 .2.
00:52
The risk -free interest rate or risk -free.
00:57
Free, sorry, not interest rate, the risk -free rate is actually given as 7 .5 % and the premium.
01:11
So that's basically the difference between the risk -free and the market risk.
01:19
And that is the premium, the difference between market rate and the risk -free rate.
01:32
So the premium is given us 4%.
01:36
And that's basically what we need in order to determine the price...