A fast growth share has the first dividend (t=1) of $2.41. Dividends are then expected to grow at a rate of 6 percent p.a. for a further 2 years. It then will settle to a constant-growth rate of 1.6 percent. . If the required rate of return is 16 percent, what is the current price of the share? (to the nearest cent)

Select one:

a. $17.95

b. $36.10

c. $16.74

d. $17.91

A company has its share currently selling at $18.70 and pays dividends annually. The company is expected to grow at a constant rate of 3 percent pa.. If the appropriate discount rate is 18 percent p.a., what is the expected dividend, a year from now (rounded to nearest cent)?

ABC Limited has a stable sales track record but does not expect to grow in the future. Its last annual dividend was $5.39. If the required rate of return on similar investments is 19 percent p.a., what is the current share price? (to the nearest cent; don't use the $ sign)