If the required return is 16 percent and the company just


Taylor Corp. is growing quickly. Dividends are expected to grow at a 28 percent rate for the next three years, with the growth rate falling off to a constant 7.9 percent thereafter. Required: If the required return is 16 percent and the company just paid a $3.70 dividend, what is the current share price? (Hint: Calculate the first four dividends.) (Do not include the dollar sign ($). Round your answer to 2 decimal places (e.g., 32.16).)

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Financial Management: If the required return is 16 percent and the company just
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