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Interstellar plc is a fast growing technology company. The firm projects a rapid growth of 40 per cent for the next two years and then

Interstellar plc is a fast growing technology company. The firm projects a rapid growth of 40 per cent for the next two years and then a growth rate of 20 per cent for the following two years. After that, the firm expects a constant-growth rate of 8 per cent. The firm expects to pay its first dividend of 1.25 a year from now. If your required rate of return on such shares is 20 per cent, what is the current price of the shares?

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