Erica is analyzing the shares of songatikamascompany. The company currently pays a dividend of $2. 50. She believes the company has a new product that will result in supernormal growth of 20% for two years. Once the market for this product is saturated, she expects the songatikamas? growth will fall to 3%, which is equal to the level of world economic growth. Erica determines that the required return on songatikamasshould be 12%. What is the value of songatikamas?.
