# Question: Janicex Co is growing quickly Dividends are expected to grow

Janicex Co. is growing quickly. Dividends are expected to grow at a rate of 24 percent for the next three years, with the growth rate falling off to a constant 6 percent thereafter. If the required return is 11 percent, and the company just paid a dividend of $1.90, what is the current share price?

**View Solution:**## Answer to relevant Questions

Frey Corp. is experiencing rapid growth. Dividends are expected to grow at 30 percent per year during the next three years, 20 percent over the following year, and then 6 percent per year indefinitely. The required return on ...In the previous problem, we assumed that the stock had a single stock price for the year. However, if you look at stock prices over any year, you will find a high and low stock price for the year. Instead of a single ...Suppose a stock had an initial price of $72 per share, paid a dividend of $1.20 per share during the year, and had an ending share price of $79. Compute the percentage total return.What are the portfolio weights for a portfolio that has 145 shares of Stock A that sell for $45 per share and 110 shares of Stock B that sell for $27 per share?A stock has a beta of 1.05, the expected return on the market is 10 percent, and the risk-free rate is 3.8 percent. What must the expected return on this stock be?Post your question