How much would you be willing to pay per share

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Question - The share of Bowling Equipment currently pays a dividend (Do) of R4. This dividend is expected to grow at an annual rate of 20% for the next three years. The dividend is expected to increase by R1 in year 4 and to grow at a constant annual rate of 4% thereafter. If you require a 15% rate of return on an investment such as this, how much would you be willing to pay per share?

Reference no: EM133105102

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