What is the current share price
Problem
Comet Inc. expects to pay its first dividend of $2.50 at the end of year 2 and a dividend of $3.00 at the end of year 3. After that, dividends will grow at a constant rate of 5%. If investors require 15%, what is the current share price?
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After that, dividends will grow at a constant rate of 5%. If investors require 15%, what is the current share price?
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