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You are currently evaluating a company that is experiencing a rapid growth phase. The company...

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You are currently evaluating a company that is experiencing a rapid growth phase. The company has just declared earnings per share of 50pence and pays 50% of its annual earnings as a dividend. Earnings and dividends are forecast to grow at a rate of 20% for three years before settling to a sustainable growth level of 6% per annum. Which answer best represents the company's current share price if investors demand a required rate of return of 10% per annum on the company's shares? 752 b. 815 890 d. 915 1063

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