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What is the estimated value of polycorp share

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Reference no: EM132966850

Problem 1: Polycorp plans to pay a dividend of $6 in one year's time. Dividends are then expected to increase by a $1 a year for 5 years. After that they are expected to grow at 2% pa forever. Shareholders required return on equity is 11% pa. What is the estimated value of Polycorp shares?

Reference no: EM132966850

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