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2 (30 Marks) Great Potential Plc has made the following dividend payments to its shareholders: Date 5 years ago 4 years ago 3 years ago
2 (30 Marks) Great Potential Plc has made the following dividend payments to its shareholders: Date 5 years ago 4 years ago 3 years ago 2 years ago Last year This year Dividend per share $5.00 $5.16 $5.40 $5.50 $5.65 $5.80 The cost of equity (Re) for Great Potential Plc is 9.2%. A. Based on the table given above, calculate the historical growth rate in dividends. (7.5 marks) . (7.5 ) B. Using the Gordon growth formula, compute the fundamental value of company. In doing so, assume that the perpetual growth rate in dividends will be equal to the historical growth rate. (7.5 marks) English (United States)
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