Marcel Co. is growing quickly. Dividends are expected to grow at a 26 percent rate for the next 3 years, with the growth rate falling off to a constant 6 percent thereafter.

Required:

If the required return is 13 percent and the company just paid a $1.20 dividend. what is the current share price? (Do not round your intermediate calculations.)

Multiple Choice

• $30.28

• $28.02

• $26.79

• $29.69

• $29.09