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The Prime Corporation pays dividends annually. It is just about to pay a dividend of $8.30 per share. Its dividend is expected to grow at
The Prime Corporation pays dividends annually. It is just about to pay a dividend of $8.30 per share. Its dividend is expected to grow at a rate of 30 percent for the next three years (i.e. during years 1, 2 and 3) and then at 22 percent for two years (i.e. during years 4 and 5). After that it is expected to grow at 4 percent each year forever. The market capitalization rate on similar stocks is 14 percent. What is the current price of a share of Prime's stock?
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