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Marcel Co. is growing quickly. Dividends are expected to grow at a 24 percent ra

ID: 2705523 • Letter: M

Question

Marcel Co. is growing quickly. Dividends are expected to grow at a 24 percent rate for the next 3 years, with the growth rate falling off to a constant 7 percent thereafter.

If the required return is 14 percent and the company just paid a $1.50 dividend. what is the current share price? (Do not round your intermediate calculations.)

Required:

If the required return is 14 percent and the company just paid a $1.50 dividend. what is the current share price? (Do not round your intermediate calculations.)

Explanation / Answer

$34.84