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Growing, Inc. is a firm that is experiencing rapid growth. The firm yesterday paid a dividend of $3.80. You believe that dividends will grow at
Growing, Inc. is a firm that is experiencing rapid growth. The firm yesterday paid a dividend of $3.80. You believe that dividends will grow at a rate of 21.0% per year for three years, and then at a rate of 9.0% per year thereafter. You expect that the stock will sell for $60.64 in three years. You expect an annual rate of return of 24.0% on this investment. If you plan to hold the stock indefinitely, what is the most you would pay for the stock now? options: $39.53 $31.55 $42.66 $26.64 $36.51
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