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Fool's Gold Mines (FGM) suspended its dividend today because of delays in obtaining permits for its overseas mines. Suppose you expect FGM to resume paying
Fool's Gold Mines (FGM) suspended its dividend today because of delays in obtaining permits for its overseas mines. Suppose you expect FGM to resume paying 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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