Problem:
Frey Corp. is experiencing rapid growth. Dividends are expected to grow at 26 percent per year during the next three years, 16 percent over the following year, and then 6 percent per year indefinitely. The required return on this stock is 12 percent, and the stock currently sells for $84 per share.
Required:
Question: What is the projected dividend for the coming year?
Note: Provide support for your rationale.