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13. Sohar Aluminium has the following dividend history: Year Dividend per Share Recently paid 25 bz Last year 19 bz Two years ago 18 bz

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13. Sohar Aluminium has the following dividend history: Year Dividend per Share Recently paid 25 bz Last year 19 bz Two years ago 18 bz Three years ago 16 bz Four years ago 14 bz Five years ago 11 bz The rate of return required on a share of this risk class is 15 per cent. Assuming that this dividend growth rate is unsustainable and Sohar will halve its historic rate in the future, what is the value of one share? (1.5+1.5 = 3 marks)

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