Two-Stage Dividend Growth Model Thirsty Cactus SA has just paid a dividend of 2.50 per share. The

Question:

Two-Stage Dividend Growth Model Thirsty Cactus SA has just paid a dividend of €2.50 per share. The dividends are expected to grow at 25 per cent for the next eight years, and then level off to an 8 per cent growth rate indefinitely. If the required return is 13 per cent, what is the share price today?

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