Growth rate in dividends-what is the current share price

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Reference no: EM131020039

Leisure Lodge Corporation is expected to pay the following dividends over the next four years: $19, $10, $5.2 and $2.4. Afterwards, the company pledges to maintain a constant 3 percent growth rate in dividends forever. If the required return on the stock is 13 percent, what is the current share price? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Reference no: EM131020039

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