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04. (Exam paper 81 2018) Gandolf Ltd (GL) is expected to pay its rst dividend of $0.50 per share next year. The dividend is then

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04. (Exam paper 81 2018) Gandolf Ltd (GL) is expected to pay its rst dividend of $0.50 per share next year. The dividend is then expected to remain at $0.50 for a further 3 years (years 2, 3 and 4) after which it is expected to grow at a constant 2.5% p.a. forever. Shareholders require a 12% pa. return

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