Experiencing rapid growth

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Reference no: EM13923937

Navel County Choppers Inc. is experiencing rapid growth. The company expects dividends to grow at 20 percent per year for the next 10 years before leveling off at 5 percent into perpetuity. The required return on the company’s stock is 11 percent. If the dividend per share just paid was $1.57, what is the stock price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Stock price?

Reference no: EM13923937

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