Please solve as soon as possible. Its very urgent Hawk Co. just paid a $1.20 dividend and is growing rapidly, with dividends expected togrow at a rate of 14% for the next 3 years, and then to fall off to a constant 3%thereafter. If the required return is 7%, what should the current share price be?$39.01O $42.28$40.62O $41.46$40.00

As per dividend discount model where constant growth starts from fourth year onwards, Current share…

Hawk Co. just paid a $1.20 dividend and is growing rapidly, with dividends expected t grow at a rate of 14% for the next 3 years, and then to fall off to a constant 3% thereafter. If the required return is 7%, what should the current share price be? O $39.01 $42.28 O $40.62 O $41.46 O $40.00

Hawk Co. just paid a $1.20 dividend and is growing rapidly, with dividends expected t grow at a rate of 14% for the next 3 years, and then to fall off to a constant 3% thereafter. If the required return is 7%, what should the current share price be? O $39.01 $42.28 O $40.62 O $41.46 O $40.00

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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Please solve as soon as possible. Its very urgent

Hawk Co. just paid a $1.20 dividend and is growing rapidly, with dividends expected to
grow at a rate of 14% for the next 3 years, and then to fall off to a constant 3%
thereafter. If the required return is 7%, what should the current share price be?
$39.01
O $42.28
$40.62
O $41.46
$40.00

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