Explain capital budgeting techniques for supernormal growth

Reference no: EM1312779

Explain Capital Budgeting Techniques for Supernormal Growth

Rizzi Co. is growing quickly. Dividends are expected to grow at a 25 percent rate for the next 3 years, with growth rate falling off to a constant 8 percent thereafter. If the required return is 11 percent and the comp just paid a $3.50 dividend, the current share price is $_________. (Round your answer to 2 decimal places, e.g. 32.16.)

Reference no: EM1312779

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