Supernormal Growth Janicek Corp. is experiencing rapid growth. Dividends are expected to grow at 25 percent per

Question:

Supernormal Growth Janicek Corp. is experiencing rapid growth. Dividends are expected to grow at 25 percent per year during the next three years, 15 percent over the following year, and then 8 percent per year indefinitely. The required return on this stock is 14 percent, and the stock currently sells for $65 per share. What is the projected dividend for the corning year?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...