Sheridan, Inc., is a fast-growing technology company. Management projects rapid growth of 30 percent for...
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Sheridan, Inc., is a fast-growing technology company. Management projects rapid growth of 30 percent for the next two years, then a growth rate of 17 percent for the following two years. After that, a constant-growth rate of 8 percent is expected. The firm expects to pay its first dividend of $2.75 a year from now. If dividends will grow at the same rate as the firm and the required rate of return on stocks with similar risk is 15 percent, what is the current value of the stock? (Round all intermediate calculations and final answer to 2 decimal places, e.g. 15.20.) Current value $
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