Calculate the current share price


Question: Rizzi Co. is growing fast. Dividends are expected to grow at a 25% rate for the next three years, with growth rate falling off to a constant 8% thereafter. If the required return is 11% and the comp just paid a dollar 3.50 dividend, the current share price is $______. [Give your answer to two decimal places]

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Finance Basics: Calculate the current share price
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