The required return on the stock

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Reference no: EM131324437

Apocalyptica Corporation is expected to pay the following dividends over the next four years: $5.30, $16.30, $21.30, and $3.10. Afterwards, the company pledges to maintain a constant 5.75 percent growth rate in dividends, forever.

Required:

If the required return on the stock is 8 percent, what is the current share price? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Reference no: EM131324437

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