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1. A company has its share currently selling at $28.21 and pays dividends annually. The company is expected to grow at a constant rate of
1. A company has its share currently selling at $28.21 and pays dividends annually. The company is expected to grow at a constant rate of 5 percent pa.. If the appropriate discount rate is 17 percent p.a., what is the expected dividend, a year from now (rounded to nearest cent)? 2. ABC Limited has a stable sales track record but does not expect to grow in the future. Its last annual dividend was $4.22. If the required rate of return on similar investments is 17 percent p.a., what is the current share price? (to the nearest cent; don't use the $ sign)
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