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A fast growth share has the first dividend (t=1) of $1.12. Dividends are then expected to grow at a rate of 5 percent p.a. for
A fast growth share has the first dividend (t=1) of $1.12. Dividends are then expected to grow at a rate of 5 percent p.a. for a further 2 years. It then will settle to a constant-growth rate of 3.2 percent. . If the required rate of return is 12 percent, what is the current price of the share?
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