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Assume that BHF Ltd has a current growth rate of 10% p.a. that is expected to be maintained for only another three years and then

Assume that BHF Ltd has a current growth rate of 10% p.a. that is expected to be maintained for only another three years and then fall to 5% p.a., where it is expected to remain indefinitely. Given that the required return on BHF's shares is 12% and that the last dividend of 50 cents has just been paid, the price of BHF's shares will be: (4 marks)

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