hi can you explain how did we get the highlighted 0.025 amount.

6.17 Calliope Ltd has been listed for the last 20 years. Over this time, investors have enjoyed a steady stream of dividends. You expect the current annual growth rate of about 1% to be maintained into the foreseeable future. Dividends are paid semi-annually and the dividend paid last week was 13c per share. If your required return for Calliope is 5% p.a., what is the intrinsic value of a share? D Using equation 6.7 Ve - re - 8 V. = D(1+g) re-g 0.13(1+0.005) 0.025 -0.005 The last dividend would have been a semi-annual one. The growth rate and required return, however, are annual so need to be divided by two. 0.13065 0.02 = = $6.53