Determining the current stock price


Huang Company's last dividend was $1.25. The dividend growth rate is expected to be constant at 15% for 3 years, after which dividends are expected to grow at a rate of 6% forever. If the firm's required return (rs) is 11%, what is its current stock price?

a. $30.57

b. $31.52

c. $32.49

d. $33.50

e. $34.50

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Finance Basics: Determining the current stock price
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