Question
BF Ltd anticipates growth over the next few years with the following dividends forecast for the next 4 years. YearExpected Dividend1$1.502$2.863$3.754$5.255? After the year 4
BF Ltd anticipates growth over the next few years with the following dividends forecast for the next 4 years.
YearExpected Dividend1$1.502$2.863$3.754$5.255?
After the year 4 dividend is paid, future dividends are expected to grow at a constant growth [depends on the last digit of student ID*]rate indefinitely.
*Ifthelast digit of your student IDis anodd number (for example XXXXXX3),the growth rate is 5%.
Ifthelast digit of your student IDis aneven number (including 0) (for example XXXXXX0 or XXXXXX2),the growth rate is 7%.
If the required return is 10 %, what is the current share price?
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