Question
Supernormal Growth Biarritz Corp. is growing quickly. Dividends are expected to grow at a rate of 25 percent for the next 3 years, with the
Supernormal Growth
Biarritz Corp. is growing quickly. Dividends are expected to grow at a rate of 25 percent for the next 3 years, with the growth rate falling off to a constant 4.5 percent thereafter. If the required return is 10.5 percent and the company just paid a dividend of $2.85, what is the current share price?
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Cases in Financial Reporting
Authors: Michael J. Sandretto
1st edition
538476796, 978-0538476799
