Question: Differential Growth Phillips Co. is growing quickly. Dividends are expected to grow at a rate of 25 percent for the next three years, with the

Differential Growth Phillips Co. is growing quickly. Dividends are expected to grow at a rate of 25 percent for the next three years, with the growth rate falling off to a constant 5 percent thereafter. If the required return is 12 percent and the company just paid a dividend of $3.10, what is the current share price? 5

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