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S 0 8 - 1 9 Supernormal Growth [ LO 1 ] Orkazana Corporation is experiencing rapid growth. Dividends are expected to grow at 2

S08-19 Supernormal Growth [LO1]
Orkazana Corporation is experiencing rapid growth. Dividends are expected to grow at
25 percent per year during the next three years, 15 percent over the following year, and
then 6 percent per year indefinitely. The required return on this stock is 10 percent, and
the stock currently sells for $86 per share. What is the projected dividend for the coming
year? (Do not round intermediate calculations and round your answer to 2 decimal
places, e.g.,32.16.)
Projected dividend
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