Solution-What would be the current price of the share

What would be the current price of the share

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Knight Ltd's current dividend is $2.00 per share. Knight is expected go through a rapid growth stage and the annual dividends are expected to grow at 15% a year for each of the next 3 years. After 3 years the growth rate of dividends is expected to settle down to 7% a year indefinitely. If the required return for this share is 17% what would be the current price of the share?

Reference no: EM132774740

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What would be the current price of the share

Reference no: EM132774740

Reference no: EM132774740

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