Thriving young company and it expects no dividends

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Reference no: EM131307951

Pine Grove, Inc., is a thriving young company and it expects no dividends over the next 3 years because the company needs to reinvest its earnings to fund its various projects. The company will pay a $5.9 per share dividend in 4 years and will increase the dividend by 8 percent per year thereafter. If the required return on this stock is 11.4 percent, the current share price should be $_______. (Do not include the dollar sign ($). Round your answer to 2 decimal places. (e.g., 32.16))

Reference no: EM131307951

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