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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

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

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