What is the current value of stock for blossom infotech

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Blossom Infotech is a fast-growing communications company. The company did not pay a dividend last year and is not expected to do so for the next two years. Last year the company's growth accelerated, and management expects to grow the business at a rate of 40 percent for the next five years before growth slows to a more stable rate of 7 percent. In the third year, management has forecasted a dividend payment of $1.40. Dividends will grow with the company thereafter.

Problem 1: What is the current value of this stock? (Round intermediate calculations to 3 decimal places, e.g. 15.257 and final answer to 2 decimal places, e.g. 15.25)

Reference no: EM132949165

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