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Janicex Co. is growing quickly. Dividends are expected to grow at a rate of 24 percent for the next three years, with the growth rate falling off to a constant 5 percent thereafter.

Required:

Question: If the required return is 12 percent and the company just paid a dividend of $3.85, what is the current share price?

Note: Show supporting computations in good form.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M91171025

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