Panda Corporation is going through a period of intense growth. Last year, the company recorded a net profit of $5 million. Net profit is expected to grow at an average rate of 35% over the next three years, before declining to a constant growth rate of 5%, which will enable the company to maintain its current policy of 40% profit retention. The company's return on equity (ROE) is 10% and the cost of equity is 15%. The company has 400,000 shares outstanding. 

What is the current share price?

Answer rating: 100% (QA)

To get the companys current share price we first need to calculate the dividends for the first three ... View the full answer