Calculate the value of the shares of tom-jack and harry

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Tom, Jack and Harry paid a dividend of 120 cents. The dividends are expected to grow by 40% per annum during the 3-year supernormal period when the cost of equity is 30%, then grow at 20%per annum thereafter when the cost of equity is 25%.

Calculate the value of the shares of Tom, Jack and Harry (15)

If dividends are not expected to grow after the supernormal growth period, what will be the value of stock of Tom, Jack and Harry

Reference no: EM133116454

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