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Applying the Gordon Growth Model, if a shares next dividend is expected to be 70 pence, the required rate of return is estimated to be

Applying the Gordon Growth Model, if a shares next dividend is expected to be 70 pence, the required rate of return is estimated to be 10% and the dividends are projected to increase at 5% per annum indefinitely, then the share should sell for:

a) 7 b) 14 c) 15 d) 20 e) 21

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