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A rapidly growing company just paid a dividend of $1.50 a share. For the next three...

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Finance

A rapidly growing company just paid a dividend of $1.50 a share.For the next three years, the earnings growth rate is projected tobe 15% each year, and then 4% each year thereafter. If the requiredrate of return is 9%, what is the value of the stock?

A)$35.15

B)$38.63

C)$43.88

D)$41.65

Answer & Explanation Solved by verified expert
4.3 Ratings (816 Votes)
Solution The value of the stock 4165Thus the solution is Option D    See Answer
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