Problem $10-26$

Allied Coal will pay a common share dividend of $$3\mathrm{.}55$ at the end of the

year $(D_1).$ The required return on common shares $(K_e)$ is $20$ percent.

The firm has a constant growth rate $(g)$ of $10$ percent. Compute the

current price of the shares $.($Round the final answer to $2$ decimal

places.$)$

Current price of common share

$