Marcel Co. is growing quickly. Dividends are expected to grow at a 24 percent rate for the next 3 years, with the growth rate falling off to a constant 8 percent thereafter.

Required:

If the required return is 15 percent and the company just paid a $2.90 dividend. what is the current share price? (Do not round your intermediate calculations.)

rev: 09_18_2012

Multiple Choice

• $64.90

• $62.59

• $58.91

• $67.55

• $66.23