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CleanClothes Corp. growing quickly. Dividends are expected to grow at a 19 percent rate for the next 3 years, with the growth rate falling off
CleanClothes Corp. growing quickly. Dividends are expected to grow at a 19 percent rate for the next 3 years, with the growth rate falling off to a constant 8 percent thereafter. The required return is 12 percent and the company just paid a $3.80 annual dividend. What is the current share price? Use NPV function on calculator and show inputs with calculator.
a. $129.96 b. $135.95 c. $148.87 d. $153.20
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