Calculate the first four dividends

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Burton Corp. is growing quickly. Dividends are expected to grow at a rate of 32 percent for the next three years, with the growth rate falling off to a constant 6.7 percent thereafter.

If the required return is 14 percent and the company just paid a dividend of $3.10, what is the current share price? (Hint: Calculate the first four dividends.) (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Reference no: EM131323990

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