Dividends are expected to grow-what is current share price

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Yang Corp. is growing quickly. Dividends are expected to grow at a rate of 29 percent for the next three years, with the growth rate falling off to a constant 7.8 percent thereafter.

Required:

If the required return is 15 percent and the company just paid a $3.65 dividend, what is the current share price? (Hint: Calculate the first four dividends.)

Reference no: EM13874838

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