Marcel Co. is growing quickly. Dividends are expected to grow at a 25 percent rate for the next 3 years, with the growth rate falling off to a constant 8 percent thereafter.

Required:

If the required return is 14 percent and the company just paid a $1.40 dividend. what is the current share price? (Do not round your intermediate calculations.)

rev: 09_18_2012

Multiple Choice

• $34.21

• $36.44

• $39.05

• $38.29

• $37.52