Solved: Determining the stock price, Cost Accounting

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Determining the stock price

Response to the following problem:

Chartreuse County Choppers Inc. is experiencing rapid growth. The company expects dividends to grow at 18 percent per year for the next 11 years before leveling off at 5 percent into perpetuity. The required return on the company's stock is 12 percent. If the dividend per share just paid was $1.94, what is the stock price?

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Cost Accounting: Determining the stock price

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