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Greshak Corp. forecasts its dividends to be $2.60 per share next year, $3.20 per share in two years, and $3.80 per share in three years.
Greshak Corp. forecasts its dividends to be $2.60 per share next year, $3.20 per share in two years, and $3.80 per share in three years. After the third year, dividends are anticipated to grow at a constant sustainable rate of 5.0% per year. If Greshaks cost of capital is 15.0% and its applicable tax rate is 35.0%, what is the estimated share price for the company's common equity? YOU MUST USE AT LEAST 4 DECIMAL PLACES IN ALL CALCULATIONS AND SHOW ALL WORK TO RECEIVE CREDIT.
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