Reference no: EM133112145

King Richard Radio's stock is expected to grow at a 10 percent rate for the next 3 years and then to level off at a constant growth rate of 3 percent per year thereafter. The company just paid a dividend of $2.25 (Do = $2.25). If your required rate of return on King Richard Radio's stock is 6 percent, then what is the price of King Richard Radio's stock? (Note that depending upon how you round your dividends, your answer may be off by up to 20 cents.)