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 falling

Marcel Co. is growing quickly. Dividends are expected to grow at a 26 percent rate for the next 3 years, with the growth rate falling off to a constant 6 percent thereafter.

Required:

If the required return is 13 percent and the company just paid a $1.20 dividend. what is the current share price? (Do not round your intermediate calculations.)

Multiple Choice

  • $30.28

  • $28.02

  • $26.79

  • $29.69

  • $29.09

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