Taylor's Shellfish Corp. expects to offer an impressive dividend growth rate at 5% per year for the next 2 years and then to maintain a constant dividend growth rate of 3% thereafter. If the required return on its stock is 11% and the company just paid a $1.6 dividend, what would the current share price be?

Taylor's Shellfish Corp. expects to offer an impressive dividend growth rate at 5% per year for the next 2 years and then to maintain a constant dividend growth rate of 3% thereafter. If the required return on its stock is 11% and the company just paid a $1.6 dividend, what would the current share price be?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter8: Basic Stock Valuation

Section: Chapter Questions

Problem 2P

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