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D. 12.5% A common stock is expected to have extraordinary growth in earnings and dividends of 15% per year for 2 years, after which the
D. 12.5% A common stock is expected to have extraordinary growth in earnings and dividends of 15% per year for 2 years, after which the growth rate will settle into a constant 3%. If the discount rate is 10% and the most recent dividend was $2, what should be the approximate current share price? A. $39.58 B. $36.44 C. $37.39 D. $38.16
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