Problem:
Janicek Corp. is experiencing rapid growth. Dividends are expected to grow at 30 percent per year during the next three years, 18 percent over the following year, and then 8 percent per year indefinitely. The required return on this stock is 13 percent, and the stock currently sells for $65 per share.
Required:
Question: What is the projected dividend for the coming year?
Note: Provide support for your underlying principle.