Question 17: Supernormal Growth, Duffs Co. Is growing quickly. Dividends are expected to grow at a 24% rate for the next three years: $12, $8, $7, and $2.50. Afterwards, the company pledges to maintain a constant 5% growth rate is dividends forever. If the required return on the stock is 12%, what is the current share price?

Question 17: Supernormal Growth, Duffs Co. Is growing quickly. Dividends are expected to grow at a 24% rate for the next three years: $12,$8,$7, and $2.50. Afterwards, the company pledges to maintain a constant 5% growth rate is dividends forever. If the required return on the stock is 12%, what is the current share price