Question
18. Supernormal Growth Synovec Corp. is growing quickly. Dividends are expected to grow at a rate of 25 percent for the next three years,
18. Supernormal Growth Synovec Corp. is growing quickly. Dividends are expected to grow at a rate of 25 percent for the next three 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 $3.15, what is the current share price?
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Financial Reporting Financial Statement Analysis and Valuation
Authors: Clyde P. Stickney
6th edition
324302959, 978-0324302967, 324302967, 978-0324302950
