Determine the current share price

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Reference no: EM131795943

Question: 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 6.2 percent thereafter. If the required return is 14 percent and the company just paid a dividend of $2.85, what is the current share price? (Hint: Calculate the first four dividends.)

Reference no: EM131795943

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