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What is the price of the share four years from now

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Reference no: EM132892507

Problem 1: A company's dividend grows at a constant rate of 5 percent p.a. Last week it paid a dividend of $1.47. If the required rate of return is 16 percent p.a., what is the price of the share 4 years from now? (round to nearest cent)

a. $17.06
b. $16.24
c. $9.42
d. $25.41

Reference no: EM132892507

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