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1 . Yesterday, your company had just paid a semi - annual dividend of $ 1 . 3 5 per share and investors expected at

1. Yesterday, your company had just paid a semi-annual dividend of $1.35 per share and investors expected at that point in time that your company would continue to pay this amount in dividends into the foreseeable future. However, today your company announced at the general shareholder meeting, that from now on the company expects that the dividends will increase by 0.5% every half year. The investors in your company require a yield of 7.6% p.a. for holding your shares.
a) What was the share price of the shares in your company yesterday?
b) What is the stock price today?

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