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14. Suppose that sales and profits of Oly Enterprises are growing at a rate of 30% per year. At the end of four years the
14. Suppose that sales and profits of Oly Enterprises are growing at a rate of 30% per year. At the end of four years the growth rate will drop to a steady 4\%. At the end of year 5, Oly will issue its first dividend in the amount of $2 per share. If the required return is 16%, what is the value of a share of stock? Assume dividends grow at the same rate as earnings after year 4 . a. $7.49 b. $7.67 c. $8.17 d. $9.20 e. $9.91
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