Janicex Co. is growing quickly. Dividends are expected to grow at a rate of 20 p

Question

Janicex Co. is growing quickly. Dividends are expected to grow at a rate of 20 percent for the next three years, with the growth rate falling off to a constant 8 percent thereafter. If the required return is 11 percent and the company just paid a dividend of $1.45, what is the current share price? (Round your answer to 2 decimal places. (e.g., 32.16))

Janicex Co. is growing quickly. Dividends are expected to grow at a rate of 20 percent for the next three years, with the growth rate falling off to a constant 8 percent thereafter. If the required return is 11 percent and the company just paid a dividend of $1.45, what is the current share price? (Round your answer to 2 decimal places. (e.g., 32.16))

Explanation / Answer

  Current share price

$   

  Current share price

$   

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