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Bruin Co. is growing quickly. Dividends are expected to grow at a rate of 25 percent...

Bruin Co. is growing quickly. Dividends are expected to grow at a rate of 25 percent for the next three years, with the growth rate falling of to a constant 5 percent thereafter. If the required return is 15 percent and the company just paid a $7.16 dividend, what is the share price at the end of supernormal growth (at Year 3)?

a. 146.84

b. 97.89

c. 75.18

d. 139.84

e. 93.23

Please show solutions using Excel

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jeff jeffy answered 1 year ago
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