Alarcon Techware is growing quickly. Dividends are expected to increase by $8$ percent annually for the next three years, with the growth rate falling off to a constant $3$ percent thereafter. The required return is $14$ percent and the company just paid its annual dividend of $$3\mathrm{.}64$ per share. What is the current share price?

Selected Answer:

Incorrect

$$51\mathrm{.}11$

Answers:

$$48\mathrm{.}96$

$$51\mathrm{.}11$

Correct

$$38\mathrm{.}79$

$$41\mathrm{.}87$

$$55\mathrm{.}70$