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YEEHAW Co. is growing quickly. Dividends are expected to grow at a rate of 30 percent...

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Finance

YEEHAW Co. is growing quickly. Dividends are expected to grow ata rate of 30 percent for the next three years, with the growth rateoff to a constant 5 percent thereafter. If the required return is11 percent, and the company just paid a dividend of $2.80, what isthe current share price?

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Transcribed Image Text

YEEHAW Co. is growing quickly. Dividends are expected to grow ata rate of 30 percent for the next three years, with the growth rateoff to a constant 5 percent thereafter. If the required return is11 percent, and the company just paid a dividend of $2.80, what isthe current share price?

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