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Hamilton Corp. is a firm that has an exciting new product on the market. It is anticipated that its sales, earnings and dividends will be

  1. Hamilton Corp. is a firm that has an exciting new product on the market. It is anticipated that its sales, earnings and dividends will be growing at a faster than normal rate over the next few years. The dividend paid yesterday was for $2.35 per share. Hamilton expects a growth rate of 20% for the first year and 15% in each of the following two years. After that, it is anticipated that growth will return to its normal level of 7% per year for the foreseeable future. If Hamiltons investors require a 12% rate of return on their investment, what is the current market price of Hamiltons stock? (5 pts)

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