Problem:
Yang Corp. is growing quickly. Dividends are expected to grow at a rate of 31 percent for the next three years, with the growth rate falling off to a constant 6.6 percent thereafter.
Required:
Question: If the required return is 12 percent and the company just paid a $2.65 dividend, what is the current share price? (Hint: Calculate the first four dividends.)
Note: Please provide full description.