Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Transcribed Image Text:BlueCorp. is growing quickly. Dividends are expected to grow at a rate of 19 percent for the next
three years, with the growth rate falling off to a constant 4.1 percent thereafter. If the required return
is 7.8 percent and the company just paid a $4.87 dividend, what is the current share price? Answer to
two decimals.
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