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A company paid dividends of 20p per share last year based on a retention ratio of 40%. The company has shown steady growth of 10%

A company paid dividends of 20p per share last year based on a retention ratio of 40%. The company has shown steady growth of 10% per year and has a P/E ratio of 20. Based on its earnings, what should its share price be? (4 Marks)

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