The rerocker corporation is expanding rapidly but its


The ReRocker Corporation is expanding rapidly, but its growth rate is slowing. Its dividend growth rate for the coming year is projected at 15.00%. This rate will decline by 3.00 percentage points per year until it reaches the industry average of 3.00%. Once it reaches 3.00%, it will stay there indefinitely. The most recent dividend was $5.00 per share, and the market requires a return of 10.00% per year on investments such as this one. (To clarify, ReRocker makes a payment once per year and the expected dividend one year from today is $5.75 per share.) Based on this information, compute the price per share for ReRocker.

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Financial Management: The rerocker corporation is expanding rapidly but its
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