Marcel Co. is growing quickly. Dividends are expected to grow at a 24 percent rate for the next 3 years, with the growth rate falling off to a constant 5 percent thereafter.

Required:

If the required return is 11 percent and the company just paid a $3.40 dividend. what is the current share price? (Do not round your intermediate calculations.)

rev: 09_18_2012

Multiple Choice

• $93.82

• $97.65

• $95.73

• $87.51

• $90.99