The Hot-Dog Inc., in Indianapolis is growing fast. The owners give you the following information in December 2017, including other papers you may need:
1) The firm paid a dividend: $0.75
2) The growth rate for the 5 years will be at least 20% per year
3) Later the growth rate will be more normal at 8%
4) The shareholders of similar firms expect a return of 12%
The owner expects to sell shares in the Indiana market and the IPO is for early 2018.
Price the share.