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BF Ltd anticipates growth over the next few years with the following dividends forecast for the next 4 years. Year Expected Dividend 1 $1.50 2

BF Ltd anticipates growth over the next few years with the following dividends forecast for the next 4 years.

Year Expected Dividend
1 $1.50
2 $2.86
3 $3.75
4 $5.25
5 ?

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.

* If the last digit of your student ID is an odd number (for example XXXXXX3), the growth rate is 5%.

If the last digit of your student ID is an even 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?

****use growth rate of 5%****

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