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Constant growth: Bella Garcia is interested in purchasing the ordinary shares of Bunnings Group which is currently priced at $34.86. The company expects to pay
Constant growth: Bella Garcia is interested in purchasing the ordinary shares of Bunnings Group which is currently priced at $34.86. The company expects to pay a dividend of $1.84 next year and expects to grow at a constant rate of 5 per cent. a. What should the market value of the share be if the required rate of return is 10 per cent? b. Is this a good buy? Why or Why not
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