Problemtaylor corp is growing quickly dividends are, Ask an Expert

Accounting

Problem:

Taylor Corp. is growing quickly. Dividends are expected to grow at a 29 percent rate for the next three years, with the growth rate falling off to a constant 6.3 percent thereafter.

Required:

Question: If the required return is 15 percent and the company just paid a $2.90 dividend, what is the current share price?

Note: Provide support for rationale.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91169539

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