Eggspressions is experiencing rapid growth the company just


Eggspressions is experiencing rapid growth. The company just paid a dividend of $1.94 and expects dividends to grow at 16% per year for the next 11 years before leveling off at a 4% growth rate into perpetuity. If your minimum required return on the company’s stock is 10 percent, what is the highest price you are willing to pay for a share of stock? How would your maximum price change if you assume that dividends stay constant after year 11?

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Financial Management: Eggspressions is experiencing rapid growth the company just
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