Problemyang corp is growing quickly dividends are expected, Ask an Expert

Accounting

Problem:

Yang Corp. is growing quickly. Dividends are expected to grow at a rate of 28 percent for the next three years, with the growth rate falling off to a constant 6.9 percent thereafter.

Required:

Question: If the required return is 16 percent and the company just paid a $3.20 dividend, what is the current share price?

Note: Explain all calculation and formulas.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91171970

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