If the required return is 12 percent and the company just


Yang Corp. is growing quickly. Dividends are expected to grow at a rate of 31 percent for the next three years, with the growth rate falling off to a constant 6.6 percent thereafter.

Required:

If the required return is 12 percent and the company just paid a $2.65 dividend, what is the current share price? (Hint: Calculate the first four dividends.)

 

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Finance Basics: If the required return is 12 percent and the company just
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