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Nonconstant growth: Anittel Pty Ltd is a fast growing technology company. The company projects a rapid growth of 30 per cent for the next 2
Nonconstant growth: Anittel Pty Ltd is a fast growing technology company. The company projects a rapid growth of 30 per cent for the next 2 years, then a growth rate of 17 per cent for the following 2 years. After that, the company expects a constant growth rate of 8 per cent. The company expects to pay its first dividend of $2.45 a year from now. If your required rate of return on such shares is 22 per cent, what is the current price of the share?
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