Calculate the dividend payable at the end of year

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Question - An ordinary share pays annual dividends and is expected to pay a dividend of $5 in one year. The annual dividend will grow at 10% until the end of year 4. The growth rate then becomes 5% p.a. forever.

Required - Calculate the following dividend.

The dividend payable at the end of year 3.

The dividend payable at the end of year 6.

Reference no: EM132857494

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