Question: I need help with this question in 10 min please Question 1044 points Evador Company has recently discovered a new type of witty ter which
Question 1044 points Evador Company has recently discovered a new type of witty ter which is tremely absorbent. It is expected that the firm will experience the ay hic rowth rate during the first three years. During this period 3 year has esclusive rights to the property where the raw material used to make this witty Bitter is found it is expected to grow at 20% in the first year, 25% in the second year and 30% in the third year. However, beginning with the fourth year the firm's competition will have access to the material, and from that time on the firm will achieve a normal growth rate of 6 percent annually. During the rapid growth period, the firm's dividend payout ratio will be relatively low 10% in the end of first and second year, then increase to 20% at the end of the third year. From the fourth year onwards the payout ratio will be so percent. Last year's earnings were EO - $2.00 per share, and the firm's required return is 12 percent. What should be the current price of the common stock? $34.29 $27.40 $26.49 $28.73
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