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    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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    https://brainmass.com/business/dividends-stock-repurchase-and-policy/supernormal-growth-rizzi-co-175539

    Solution Preview

    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. ...

    Solution Summary

    200+ words explains how to find current share price given details of the supernormal growth of a company.

    $2.49

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