Duffs Co. is growing quickly. Dividends are expected to grow at a 24 percent rate for the next three years, with the growth rate falling off to a constant 6 percent thereafter. If the required return is 11 percent and the company just paid a $1.90 dividend, what is the current share price? Required return 11.0% Most recent dividend $ 1.90 Supernatural growth rate 24.0% Constant growth rate after year 3 6.0%

Dividend year 1

Dividend year 2

Dividend year 3

Stock Price year 3

PV of CF year 1

PV of CF year 2

PV of CF year 3

Price of the stock today