Prestige Packaging has paid the annual dividends per share as set out below. The companys directors expect

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Prestige Packaging has paid the annual dividends per share as set out below. The company’s directors expect that the past dividend growth rate will also be maintained at a constant rate in the future.

The company has just paid its dividend for 1999 of £0.35 per share. If investors currently require a share of equal risk to earn a return of 15 per cent, calculate the value of the share. Ignore taxation.

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