Share Values Wild Horses plc has just announced that it will not pay a dividend because of atrocious trading conditions over the previous year. However, analysts expect the company to pay a dividend of £0.50 next year.

If dividends are expected to grow at a constant rate of 10 per cent per year indefinitely, and investors require a 12 per cent return on the company, what is the current price?

What will the price be in five years? In ten years?