Find what is the current value of the firm shares

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Problem a) What are the advantages and the disadvantages of using the IRR method?

Problem b) Northern Crabs Ltd paid a cash dividend of $1.80 yesterday. This dividend is expected to grow at a rate of 12% per year for 3 years. After that growth should drop to 6% and continue at 6% to "infinity." If the required rate of return on these shares is 15%, what is the current value of the firm's shares?

Reference no: EM132761509

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