$28$

Chapter $7$: Non$-$Constant Growth

False Bard Corp is growing quickly. Dividends are expected to grow at a rate of $25\%$ next year, then $20\%$ in year $2,$ with the growth rate dropping to a constant $5\%,$ thereafter. If the required return is $10\%$ and the company just paid a dividend of $$2\mathrm{.}00,$ what is the current share price?

Use the below table if you wish to copy the data into Excel.

$\backslash$table$[[$Most Recent Dividend,$$2\mathrm{.}00$