Reference no: EM133174404

Question - MZIZE LTD management anticipates that, after five years of paying a constant dividend of R2 per year, they will be able to secure new markets. THE MZIZE Management thus feels that, commencing with the dividend in year 6, dividends should grow at a rate of 20% per annum for two years (i.e., in years 6 and 7); then there should be 18% growth for one year (i.e., in year 8), settling down thereafter to a constant growth of 10% per annum indefinitely. The required return has increased to 20% per annum. You are required to calculate the price of MZIZE LTD shares today.