Non-constant growth: Denyer & Grant Ltd., is a fast growth share and expects to grow at a rate of 25 percent for the next four years. It then will settle to a constant-growth rate of 10 percent. The first dividend will be paid out in year 3 and will be equal to $5.00. If the required rate of return is 18 percent, what is the current price of the share?
A) $85.94
B) $97.19
C) $50.59
D) $65.68

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The Answer of Non-constant growth: Denyer & Grant Ltd., is a fast growth share and expects to grow at a rate of 25 percent for the next four years. It then will settle to a constant-growth rate of 10 percent. The first dividend will be paid out in year 3 and will be equal to $5.00. If the required rate of return is 18 percent, what is the current price of the share?
A) $85.94
B) $97.19
C) $50.59
D) $65.68

Non-Constant Growth: Denyer & Grant Ltd