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7 QUESTION 7 Manchester plc is expected to pay annual dividends of 1.50, 1.75 and 2.00 per share at the end of each of the
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QUESTION 7 Manchester plc is expected to pay annual dividends of 1.50, 1.75 and 2.00 per share at the end of each of the next three years (i.e., from t=1 to t=3). After year 3, annual dividends are expected to grow at a rate of 2% forever. Assuming that shareholders of Manchester plc. require a rate of return equal to 5% per year, what is the fair value for the share of Manchester plc.? 95.52 64.70 48.37 63.48Step by Step Solution
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