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 8 percent thereafter.

Required: If the required return is 14 percent and the company just paid a $2.10 dividend, what is the current share price? Note: since the dividend at time 0 of $2.10 has just been paid, do not include it in the price at time 0. (Do not round your intermediate calculations.)

Multiple Choice

• $57.58

• $58.76

• $52.49

• $59.93

• $55.92