Question

Upton co. Is growing quickly. Dividends are expected to grow at 20 percent for the next three years, with the growth rate falling off to a constant 5 percent thereafter. If the required return is 14 percent and the company just paid a dividend of $2.50, what is the current share price? (do not round intermediate calculations. Round your answer to 2 decimal places,
e.G., 32.16.)

Answer 1

The answer to your question is 7.