Jim Ltd.s next dividend will be $3, the dividend is expected to grow at 8% p.a., for the following 3 years. After that the growth rate in dividends will be 5% per year indefinitely. Required rate of return is 12% p.a.

Required:

Calculate the current value of Jim Ltd.s shares.

Answer 7: [Answer and show workings here]

(Calculate and type your answer below)

Year	Dividend Amount
1
2
3
4

Share Price: (Discounted present values)

Year	Dividend	Discount factor	Amount
1
2
3
	Growth model value	-	-
3
Total			=

[Show workings here]