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An ordinary share pays annual dividends and is expected to pay a dividend of $5 in one year. The annual dividend will grow at 10%
An ordinary share pays annual dividends and is expected to pay a dividend of $5 in one year. The annual dividend will grow at 10% until the end of year 4. The growth rate then becomes 5% p.a. forever. Calculate the following dividend. Round your answer to the nearest cent. Do not include 5. Do not use comma separators. For example, 1234.56 would be the correct format. The dividend payable at the end of year 3 is $ (1 mark) The dividend payable at the end of year 6 is $ (1 mark)
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