Synovec Corporation is growing quickly. Dividends are expected to grow at a rate of 28 percent for the next three years, with the growth rate falling off to a constant 6.4 percent, thereafter. The required return is 16 percent and the company just paid a dividend of $2.95. What are the dividends each year for the next four years? What is the share price in three years? What is the current share price?

Synovec Corporation is growing quickly. Dividends are expected to grow at a rate of 28 percent for the next three years, with the growth rate falling off to a constant 6.4 percent, thereafter. The required return is 16 percent and the company just paid a dividend of $2.95. What are the dividends each year for the next four years? What is the share price in three years? What is the current share price?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter7: Common Stock: Characteristics, Valuation, And Issuance

Section: Chapter Questions

Problem 13P

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