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A fast growth share has the first dividend (t=1) of $2.48. Dividends are then expected to grow at a rate of 6 percent p.a. for
A fast growth share has the first dividend (t=1) of $2.48. Dividends are then expected to grow at a rate of 6 percent p.a. for a further 3 years. It then will settle to a constant-growth rate of 1.5 percent. . If the required rate of return is 14 percent, what is the current price of the share? (to the nearest cent).
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