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Assume that today is the last day of 2014. Rednip Ltd is expected to pay annual dividends of 64 cents in 2015 (Year 1).

 

Assume that today is the last day of 2014. Rednip Ltd is expected to pay annual dividends of 64 cents in 2015 (Year 1). Assume that this dividend is expected to grow at an annual rate of 10 per cent and investors require a rate of return of 20 per cent per annum. a. Estimate Rednip Ltd's share price today. b. What is Rednip Ltd's share price expected to be at the end of 2015?

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