BlueCorp. is growing quickly. Dividends are expected to grow at a rate of 19 percent for the next three years, with the growth rate falling off to a constant 3.4 percent thereafter. If the required return is 11.55 percent and the company just paid a $3.06 dividend, what is the current share price? Answer to two decimals.
BlueCorp. is growing quickly. Dividends are expected to grow at a rate of 19 percent for the next three years, with the growth rate falling off to a constant 3.4 percent thereafter. If the required return is 11.55 percent and the company just paid a $3.06 dividend, what is the current share price? Answer to two decimals.
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
Problem 2P
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![BlueCorp. is growing quickly. Dividends are expected to grow at a rate of 19 percent for the next
three years, with the growth rate falling off to a constant 3.4 percent thereafter. If the required return
is 11.55 percent and the company just paid a $3.06 dividend, what is the current share price? Answer
to two decimals.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F47c07c2f-dd4e-4ee6-91d1-2ad7dbeb13ea%2Fd89374e2-d98d-43e1-8f89-f026120b48d3%2F32r3p9d.png&w=3840&q=75)
Transcribed Image Text:BlueCorp. is growing quickly. Dividends are expected to grow at a rate of 19 percent for the next
three years, with the growth rate falling off to a constant 3.4 percent thereafter. If the required return
is 11.55 percent and the company just paid a $3.06 dividend, what is the current share price? Answer
to two decimals.
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