Problemthe high growth companys last dividend was 150 the, Ask an Expert

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Problem:

The High Growth Company's last dividend was $1.50. The dividend growth rate is expected to be constant at 30% for 3 years, after which dividends are expected to grow at a rate of 6% forever.

Required:

Question: If High Growth's required return is 13%, what is the company's current stock price?

Note: Provide support for rationale.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91169413

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