What is the most you would pay for a share of minimart

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Question - Minimart has launched a new product that will fuel sales growth at 15% for about two years after which the growth rate will return to a normal rate of 8% which is typical for the sector. The company recently paid an annual dividend of RM2.60, which will grow with the company. The return on stocks for companies in this sector is typically around 10%. What is the most you would pay for a share of Minimart?

Reference no: EM132968691

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