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(c) Europe Ltd is currently enjoying rapid growth. It is estimated that dividends will grow at an annual rate of 12% over the next five
(c) Europe Ltd is currently enjoying rapid growth. It is estimated that dividends will grow at an annual rate of 12% over the next five years. After that, the growth rate will fall to 6% p.a. and remain at that rate. The directors have just paid an annual dividend of 3.80 per share. Calculate the intrinsic value of the share if the required rate of return 16% p.a
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