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A large sized chemical company has been expected to grow at 14 per cent per year for the next 4 years and then to grow

A large sized chemical company has been expected to grow at 14 per cent per year for the next 4 years and then to grow indefinitely at the same rate as that of the national economy, that is, 5 per cent. The required rate of return on the equity shares is 12 per cent. Assume that the company paid a dividend of Rs 2 per share last year. Determine the market price of the shares today.

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