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ii) The return on equity of Ahemba Limited is 20%. At its Board meeting recently, shareholders approved a dividend payout ratio of 40% for the

ii) The return on equity of Ahemba Limited is 20%. At its Board meeting recently, shareholders approved a dividend payout ratio of 40% for the foreseeable future. The company just paid a dividend of GHS 25 per share and investors require 15% return on their investment in the company. a) What the growth rate of Ahemba Limited? b) How much dividend will the company pay 10yrs from today? c) What is the price of a stock of Ahemba Limited 10yrs from today assuming the growth rate remains the same forever? d) How much will you pay for a stock of Ahemba Limited today?

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