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Accounting

Problem:

Janicex Co. is growing quickly. Dividends are expected to grow at a rate of 22 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 $2.35, what is the current share price?

Note: Provide support for your rationale.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91171885

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