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Gamma Ltd is growing rapidly. Dividends are expected to grow at rates of 25%, 18%, and 12% over the next three years. After that, the
Gamma Ltd is growing rapidly. Dividends are expected to grow at rates of 25%, 18%, and 12% over the next three years. After that, the company expects to grow at a constant rate of 6%. The share is currently trading at $20. The required rate of return for Gamma is 12%. What is the dividend for the current year?
Show your workings and round your final answers to 2 decimal places.
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