Synovec Company is growing quickly. Dividends are expected to grow at a rate of 22percent for the next 3 years, with the growth rate falling off to a constant 6 percentthereafter.If the required return is 12 percent and the company just paid a $3.50 dividend. what isthe current share price?Multiple ChoiceOо$94.26$87.88$92.41$90.56$83.85

Current price of share is that price which can be paid for purchase of the share. It is also called…

Answered: Synovec Company is growing quickly.…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Synovec Company is growing quickly. Dividends are expected to grow at a rate of 23 percent for the next 3 years, with the growth rate falling off to a constant 7 percent thereafter. If the required return is 12 percent and the company just paid a $2.60 dividend. what is the current share price? Multiple Choice O O $79.69 $83.13 $84.79
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