Determine the current share price


Problem:

Apocalyptica Corporation is expected to pay the following dividends over the next four years: $6.40, $17.40, $22.40, and $4.20. Afterwards, the company pledges to maintain a constant 6.00 percent growth rate in dividends, forever.

Required:

Question: If the required return on the stock is 10 percent, what is the current share price?

Note: Please provide through step by step calculations.

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Finance Basics: Determine the current share price
Reference No:- TGS0881294

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