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2 . 3 REQUIRED Use the Dividend Growth Model to estimate the cost of the ordinary shares ( expressed as a percentage to two decimal

2.3
REQUIRED
Use the Dividend Growth Model to estimate the cost of the ordinary shares (expressed as a percentage to two decimal places) from the information provided below.
(4 marks)
INFORMATION
The present value of a Torga Limited ordinary share is R50, the dividend at the end of the previous year was R8 and the expected growth rate in dividends is 10% p.a.
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