Find out the value of share if required rate of return

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Question 1: DA firm is paying dividend of $1.50 per year. Rate of dividend is expected to grow at 10% for next 3 years and 5% thereafter infinitely. Find out the value of share if required rate of return is 15%? Does present value decrease at a linear rate, at an increasing rate, or at a decreasing rate with the discount rate? Why?

Reference no: EM132571173

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