Growth rate in dividends-what is the current share price

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Reference no: EM13909220

Apocalyptica Corporation is expected to pay the following dividends over the next four years: $6.20, $17.20, $22.20, and $4.00. Afterwards, the company pledges to maintain a constant 5.50 percent growth rate in dividends, forever. Required: If the required return on the stock is 9 percent, what is the current share price?

Reference no: EM13909220

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