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Can you please answer and explain/show the steps in answering the following question. 1. Fool's Gold Mines (FGM) suspended its dividends today because of delays
Can you please answer and explain/show the steps in answering the following question. 1. Fool's Gold Mines (FGM) suspended its dividends today because of delays in obtaining permits for its overseas mines. Suppose you expect FGM to resume annual dividends in four years' time, with a dividend of $0.80 per share, growing by 4% per annum forever. If FGM's required return on equity is 10% p.a., its share price today will be closest to: a) $6.00 b) $8.00 c) $10.00 d) $13.30
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