What is the value of a share using the dividend growth model

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Question 1: An analyst estimates that the Seraphim Company will be able to increase its dividends at a 2.5 per cent rate indefinitely. The current annual dividend (just paid) is $3, and the required rate of return is 12 per cent. What is the value of a share using the dividend growth model?

Select one:

Option a. $25.60

Option b. $31.58

Option c. $31.83

Option d. $32.37

Reference no: EM132544983

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