If the required return is 015 and the company just paid a


Marcel Co. is growing quickly. Dividends are expected to grow at a rate of 0.16 for the next 4 years, with the growth rate falling off to a constant 0.04 thereafter. If the required return is 0.15 and the company just paid a $0.92 dividend, what is the current share price? Answer with 2 decimals (e.g. 45.45).

Solution Preview :

Prepared by a verified Expert
Finance Basics: If the required return is 015 and the company just paid a
Reference No:- TGS02505939

Now Priced at $20 (50% Discount)

Recommended (97%)

Rated (4.9/5)