Find the current market value of the share

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Successful Albert Ltd's last dividend was $2.25. The company expects to grow at a constant rate of 4%. Your required rate of return on such shares is 5.5%.

Problem a. Find the current market value of this share.

Problem b. What is the expected dividends in year 3?

Problem c. What is the price of the share 6 years from now?

Problem d. If the company expect no growth in the near future, what is the maximum price you would be willing to pay?

Reference no: EM132919323

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