3. 16. Non-constant Dividends [LO 8.1] Arana Hills Taxis Limited has an odd dividend policy. The company
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3. 16.
Non-constant Dividends [LO 8.1] Arana Hills Taxis Limited has an odd dividend policy. The company has just paid a dividend of $2.75 per share and has announced that it will increase the dividend by $4.50 per share for each of the next five years and then never pay another dividend. If you require a return of 11 per cent on the company’s shares, how much will you pay for a share today?
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Related Book For 
Fundamentals Of Corporate Finance
ISBN: 9781743768051
8th Edition
Authors: Stephen A. Ross, Rowan Trayler, Charles Koh, Gerhard Hambusch, Kristoffer Glover, Randolph W. Westerfield, Bradford D. Jordan
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