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: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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