Question: Combined Communications is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 22 percent a year for the next 4 years and then decreasing the growth rate to 6 percent per year. The company just paid its annual dividend in the amount of $1.30 per share. What is the current value of one share of this stock if the required rate of return is 9.00 percent?
$79.03
$64.84
$72.62
$69.10
$78.72