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(b) Liphips Ltd has just paid a dividend per share of 1.20. Shares are valued only on the basis of expected dividends. An annual sustainable
(b) Liphips Ltd has just paid a dividend per share of 1.20. Shares are valued only on the basis of expected dividends. An annual sustainable growth of dividends of 4% is assumed. The appropriate discount rate (i) is 10% per year. The planning horizon is limited to 20 years. Compute the share value. {5 marks }
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