Non-Constant Dividends Bread plc has an odd dividend policy. The company has just paid a dividend of
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Non-Constant Dividends Bread plc has an odd dividend policy. The company has just paid a dividend of £5 per share, and has announced that it will increase the dividend by £2 per share for each of the next five years, and then never pay another dividend. If you require an 18 per cent return on the company’s equity, how much will you pay for a share today?
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Related Book For 
Fundamentals Of Corporate Finance
ISBN: 9780077178239
3rd Edition
Authors: David Hillier, Iain Clacher, Stephen A. Ross
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