Problem:
Revarop, Inc., is a fast-growth company that is expected to grow at a rate of 23 percent for the next four years. It is then expected to grow at a constant rate of 6 percent. Revarop's first dividend, of $4.45, will be paid in year 3.
Required:
Question: If the required rate of return is 14 percent, what is the current value of the stock if dividends are expected to grow at the same rate as the company?
Note: Please provide full description.