Problem:
Marcel Co. is growing quickly. Dividends are expected to grow at a 24 percent rate for the next 3 years, with the growth rate falling off to a constant 7 percent thereafter.
Required:
Question: If the required return is 15 percent and the company just paid a $3.00 dividend. What is the current share price?
- $60.79
- $59.57
- $54.22
- $62.00
- $57.02
Note: Please show guided help with steps and answer.