What price should pay for one of bess juice ordinary

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Problem 1: Bess Juice Limited's expects to pay a dividend per share of $2.50 at the end of January 2019 to its ordinary shareholders. Given the company's plans to expand its export markets to include three additional companies, analysts believe the company's dividends will grow at a constant rate of 5% per year for the foreseeable future. What price should you pay for one of Bess Juice's ordinary shares if the required rate of return for similar investments is currently 7%?

Reference no: EM132791289

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