Dividends are expected to grow at rate

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Red-Blue Co. is growing quickly. Dividends are expected to grow at a rate of 24% for the next three years, with the growth rate falling off to the constant 6% per year indefinitely.

If the required return is 11%, and the company just paid a dividend of $1.90, what is the current share price?

Reference no: EM13932981

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Dividends are expected to grow at rate : Red-Blue Co. is growing quickly. Dividends are expected to grow at a rate of 24% for the next three years, with the growth rate falling off to the constant 6% per year indefinitely. If the required return is 11%, and the company just paid a dividend ..

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