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Activity 5: If the price of the share is OMR 20 and it is expected to increase at an DIV annual rate of 5 %.
Activity 5: If the price of the share is OMR 20 and it is expected to increase at an DIV annual rate of 5 %. Further it is assumed that the dividend after a year is OMR 2 and it is also expected to grow at a rate f 5% per annum. The opportunity cost of capital is 15% ,what would be the present price of share if it were held for 5 years ?
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Accounting Principles
Authors: Paul D Kimmel, Donald E Kieso Jerry J Weygandt
IFRS global edition
1-119-41959-4, 470534796, 9780470534793, 9781119419594 , 978-1119419617
