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Problem:

Marcel Co. is growing quickly. Dividends are expected to grow at a 19 percent rate for the next 3 years, with the growth rate falling off to a constant 6 percent thereafter.

Required:

Question: If the required return is 12 percent and the company just paid a $1.70 dividend. What is the current share price?

Note: Please show guided help with steps and answer.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M91173102

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