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Fast Grow Company is currently paying no dividends (DIV O = $0). To help fund its growth, Fast will also pay no dividends for
Fast Grow Company is currently paying no dividends (DIV O = $0). To help fund its growth, Fast will also pay no dividends for the next 5 years. In the 6th year, however, Fast expects to pay a dividend of $8.00 per share. This dividend will grow by 18% in the 7th year, by 12% in the 8th year, and by 6% in years 9 and beyond. If the required rate of return for Fast is 11%, what is the current price of one share of Fast's common stock?
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