Synovec Company is growing quickly. Dividends are expected to grow at a rate of 24 percent for the next 3 years, with the growth rate falling off to a constant 7 percent thereafter. If the required return is 14 percent and the company just paid a $1.40 dividend, what is the current share price? Multiple Choice $33.17 $30.72 $29.14

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter7: Common Stock: Characteristics, Valuation, And Issuance
Section: Chapter Questions
Problem 16P
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Synovec Company is growing quickly. Dividends are expected to grow at a rate of 24
percent for the next 3 years, with the growth rate falling off to a constant 7 percent
thereafter.
If the required return is 14 percent and the company just paid a $1.40 dividend, what is
the current share price?
Multiple Choice
$33.17
$30.72
$29.14
Transcribed Image Text:Synovec Company is growing quickly. Dividends are expected to grow at a rate of 24 percent for the next 3 years, with the growth rate falling off to a constant 7 percent thereafter. If the required return is 14 percent and the company just paid a $1.40 dividend, what is the current share price? Multiple Choice $33.17 $30.72 $29.14
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