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1. ABC Limited just paid dividends of P2.20 per share. Assume that the dividends will grow by 15% per year during the next two years.

1. ABC Limited just paid dividends of P2.20 per share. Assume that the dividends will grow by 15% per year during the next two years. After that growth is expected to level off to a constant growth rate of 5% per year. The required rate of return is 9%. Calculate the shares intrinsic value using the two-stage dividend growth model (10 marks)

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