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Adama is contemplating buying Ezimako Limited common stock. The company has just offered an attractive dividend of Sh. 5.60. The company has good future prospects

  1. Adama is contemplating buying Ezimako Limited common stock. The company has just offered an attractive dividend of Sh. 5.60. The company has good future prospects and promises to offer a dividend growth of 15% into the future.

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Compute the value of the stock considering the prevailing interest rate of such stock is 20%.

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