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Navel County Choppers, Inc., is experiencing rapid growth. The company expects dividends to grow at 22 percent per year for the next 8 years before leveling off at 7 percent int…

Navel County Choppers, Inc., is experiencing rapid growth. The company expects dividends to grow at 22 percent per year for the next 8 years before leveling off at 7 percent int…
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Navel County Choppers, Inc., is experiencing rapid growth. The company expects dividends to grow at 22 percent per year for the next 8 years before leveling off at 7 percent into perpetuity. The required return on the company’s stock is 14 percent. If the dividend per share just paid was $1.84, what is the stock price?

User Jonathan Bouloux
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3 votes

Answer:

Stock price is $68.65

Step-by-step explanation:

The following image shows the stock price:

Navel County Choppers, Inc., is experiencing rapid growth. The company expects dividends-example-1
Navel County Choppers, Inc., is experiencing rapid growth. The company expects dividends-example-2
User Naghal
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