Question
The common stock of Carrolls Entertainment Inc. currently pays $3.00 dividends per share. The dividends are expected to grow at an annual rate of 15.00%
The common stock of Carrolls Entertainment Inc. currently pays $3.00 dividends per share. The dividends are expected to grow at an annual rate of 15.00% for the next three years. The dividends are expected to increase by $1.00 in addition to the percentage increase in the fourth year. Thereafter, the annual constant growth rate is 6.00%. If you, as an investor, require 24.00% rate of return on this common stock investment, how much would you be willing to pay per share value of for Carrolls Entertainment Inc. common stock today?
Group of answer choices
$33.42
$36.81
$24.13
$25.97
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