18. Supernormal Growth LO 8.1] Synovec Company is growing quickly. Dividends are expected to grow at a rate of 30 per cent for the next three years, with the growth rate falling off to a constant 4 per cent thereafter. If the required return is 11 per cent and the company just paid a dividend of $2.45, what is the current share price? 9. Share Valuation and Required Return LO 8.1] Red Limited, Yellow Corporation and Blue Company each will pay a dividend of $3.65 next year. The growth rate in dividends for all three companies is 4 per cent. The required return for each company's shares is 8 per cent, 11 per cent and 14 per cent, respectively. What is the share price for each company? What do you conclude about the relationship between the required return and the share price?