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kindly assist ABC Pty (Ltd) last paid a R2.50 per share annual dividend. The company is planning on increasing the dividend by 12% for the
kindly assist
ABC Pty (Ltd) last paid a R2.50 per share annual dividend. The company is planning on increasing the dividend by 12% for the following three years. From year four, the dividend will grow by 7% per year. 1.1 The non-constant growth share valuation model is used to determine the value of one share? True or False 1.2 If the required return on the share is 10%, what is the current share price? Hint: follow the steps below Step 1: Calculate and use in Step 2. NO MARKS Step 2: [5] a) PV of D1 = b) PV of D2 = c) PV of D3 = d) Sum the PV of these dividends during supernormal growth period= Step 3: e) D4 = f) P3= Step 4: g) PV of share price at the end of the supernormal growth period Step 5: h) Sum the PV in steps 2 and 4 [2] [1] E [1] Step by Step Solution
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