Current Share Price

5. Yang Corp. is growing quickly. Dividends are expected to grow at a rate of 32 percent for the next three years, with the growth rate falling off to a constant 7.7 percent thereafter. Required:

If the required return is 14 percent and the company just paid a $1.80 dividend, what is the current share price? (Hint: Calculate the first four dividends.) (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Current share price $


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