What is current value of one share if required rate return

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Reference no: EM131059757

The Sooner Fracers Inc. is a new firm in a rapidly growing industry. The company will pay its first annual dividend in the amount of $0.20 per share in four years. Afterwards, the company increases its annual dividend by 20% a year for the next four years and then decreasing the growth rate to 5% per year. What is the current value of one share if the required rate of return is 6.25%?

$34.84

$26.95

$22.46

$12.50

Reference no: EM131059757

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