Problem:
Frey Corp. is experiencing rapid growth. Dividends are expected to grow at 25 percent per year during the next three years, 15 percent over the following year, and then 7 percent per year indefinitely. The required return on this stock is 12 percent, and the stock currently sells for $88 per share.
Required:
Question: What is the projected dividend for the coming year?
Note: Provide support for rationale.