Computing current share price


Wasserman Corp. is growing quickly. Dividends are expected to grow at a 28 percent rate for the next three years, with the growth rate falling off to a constant 7.4 percent thereafter.

If the required return is 16 percent and the company just paid a $3.45 dividend, what is the current share price?

Solution Preview :

Prepared by a verified Expert
Finance Basics: Computing current share price
Reference No:- TGS0674068

Now Priced at $5 (50% Discount)

Recommended (96%)

Rated (4.8/5)