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b) A share has just paid a dividend of $1.50 yesterday. It is expected that a dividend will be paid each year at a
b) A share has just paid a dividend of $1.50 yesterday. It is expected that a dividend will be paid each year at a constant growth rate of 3.5% p.a. for the foreseeable future. Calculate the price of the share in 2 years if the rate of return is 9% p.a. effective. Round your answer to the nearest cent. (3 marks) Page 8 of 14
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