Find the current price of donald duck share

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Donald Duck Ltd intends to pay its next dividends of $1.25 per share a year from now. Investors require rate of return on such shares at 20%. The company anticipates a rapid growth of 40 percent for the first three years and then a growth rate of 20 percent for the following two years. After that, the company expects a constant-growth rate of 8 percent. Find the current price of Donald Duck's share.

Reference no: EM132788282

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