Question: Supernormal Growth Biarritz Corp. is growing quickly. Dividends are expected to grow at a rate of 25 percent for the next 3 years, with the

Supernormal Growth

Biarritz Corp. is growing quickly. Dividends are expected to grow at a rate of 25 percent for the next 3 years, with the growth rate falling off to a constant 4.5 percent thereafter. If the required return is 10.5 percent and the company just paid a dividend of $2.85, what is the current share price?

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