Question: Marcel Co. is growing quickly. Dividends are expected to grow at a 26 percent rate for the next 3 years, with the growth rate reducing
Marcel Co. is growing quickly. Dividends are expected to grow at a 26 percent rate for the next 3 years, with the growth rate reducing to only a constant 6 percent thereafter. Required: If the required return is 12 percent and the company just paid a $3.90 dividend, what is the current share price? Note: since the dividend at time 0 of $3.90 has just been paid, do not include it in the price at time 0.
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