Find present value of the dividends during rapid growth

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Reference no: EM132055563

ABC Ltd expects to grow at a rate of 22 per cent for the next 5 years and then settle to a constant-growth rate of 6 per cent. The company's recent dividend was $2.35. The required rate of return is 15 per cent

a. Find the present value of the dividends during the rapid growth

b. What is the price of the share at the end of year

c. What is the price of the share today

Reference no: EM132055563

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