$1$ P$8-18$ Supernormal Growth $[$LO$1]$

Synovec Company is growing quickly. Dividends are expected to grow at a rate of $27$

percent for the next $3$ years, with the growth rate falling off to a constant $7$ percent

thereafter.

If the required return is $13$ percent and the company just paid a $$2\mathrm{.}40$ dividend. what is

the current share price?

Multiple Choice

$$62\mathrm{.}91$

$$68\mathrm{.}50$

$$66\mathrm{.}49$

$$69\mathrm{.}90$

$$71\mathrm{.}29$