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Problem:

Wasserman Corp. is growing quickly. Dividends are expected to grow at a 28 percent rate for the next three years, with the growth rate falling off to a constant 7.4 percent thereafter.

Required:

Question: If the required return is 16 percent and the company just paid a $3.45 dividend, what is the current share price?

Note: Provide support for rationale.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91169444

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