Navel County Choppers, Inc., is experiencing rapid growth. The company expects dividends to grow at 16 percent per year for the next 10 years before leveling off at 6 percent into perpetuity. The required return on the company’s stock is 11 percent. If the dividend per share just paid was $1.87, what is the stock price? (Do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)

The former chairman of the federal reserve, alan greenspan, used the term "irrational exuberance" in 1996 to describe the high levels of optimism among stock market investors at the time. stock market indexes such as the s& p composite price index were at an all-time high. some commentators believed that the fed should intervene to slow the expansion of the economy. why would central banks want to clamp down when the economy is growing? a. to block the formation of unsustainable speculative asset bubbles. b. to curtail excessive profits in the banking system. c. to prevent inflationary forces from gathering momentum. d. all of the above. e. a and c only.