Current price of the share

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A company has just paid its first dividend of $2.92. Next year's dividend is forecast to grow by 5 percent, followed by another 5 per cent growth in year two. From year three onwards dividends are expected to grow by 3.9 percent per annum, indefinitely. Investors require a rate of return of 14 percent p.a. for investments of this type. The current price of the share is (round to nearest cent)

Reference no: EM131983404

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