Supernormal Growth - Rizzi Co.
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Rizzi Co. is growing quickly. Dividends are expected to grow at a 21 percent rate for the next 3 years, with the growth rate falling off to a constant 8 percent thereafter. If the required return is 12 percent and the company just paid a $3.60 dividend, the current share price is $ . (Round answer to 2 decimal places, e.g. 32.16.
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200+ words explains how to find current share price given details of the supernormal growth of a company.
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Rizzi Co. is growing quickly. Dividends are expected to grow at a 21 percent rate for the next 3 years, with the growth rate falling off to a constant 8 percent thereafter.
If the required return is 12 percent and the company just paid a $3.60 dividend, the current share price is $ . (Round answer to 2 decimal places, e.g. ...
Purchase this Solution
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