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7 A company is expected to pay dividends of $2.10 per share in Year 1 and $2.35 per share in Year 2 and $2.60 in
7
A company is expected to pay dividends of $2.10 per share in Year 1 and $2.35 per share in Year 2 and $2.60 in
Year 3. After that, the dividend is expected to increase by 3% annually in perpetuity. What is the current value of
the company's shares at a discount rate of 15%p.a.? Show your workings.
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Theory Of Constraints Handbook
Authors: James Cox, John Schleier
1st Edition
0071665544, 978-0071665544
