Question: Problem 7 - 1 8 Supernormal Growth [ lll 1 1 ] Synovec Corporation is growing quickly. Dividends are expected to grow at a rate

Problem 7-18 Supernormal Growth [lll 11]
Synovec Corporation is growing quickly. Dividends are expected to grow at a rate of 32 percent for the next three years, with the growth rate falling off to a constant 6.7 percent, thereafter. If the required return is 14 percent and the company just paid a dividend of $3.10, what is the current share price?
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,32.16.
Answer is complete but not entirely correct.
\table[[Share price,$,78.39
Problem 7 - 1 8 Supernormal Growth [ lll 1 1 ]

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