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Marcel Co. is growing quickly. Dividends are expected to grow at a 21 percent rate for...

Marcel Co. is growing quickly. Dividends are expected to grow at a 21 percent rate for the next 3 years, with the growth rate falling off to a constant 6 percent thereafter.
Required:

If the required return is 10 percent and the company just paid a $2.90 dividend. what is the current share price? (Do not round your intermediate calculations.)
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Answer #1

The stock price today is equal to the present value of future dividends.

The stock price = $112.85

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