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kindly assist Extreme Adventures Ltd last paid a R1.80 per share annual dividend. The company is planning on increasing the dividend by 10% for the

kindly assist
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Extreme Adventures Ltd last paid a R1.80 per share annual dividend. The company is planning on increasing the dividend by 10% for the following four years. After that, that is, from year five, the dividend will grow by 5% per year. 4.1 Identify the share valuation model you will use to determine the value of one share. [1] 4.2 If the required return on the share is 12%, 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) D1 = b) D2 = c) D3 = d) D4 = e) Sum the PV of these dividends during supernormal growth period= Step 3: [2] f) D5 = g) P4 = Step 4: [1] h) PV of share price at the end of the supernormal growth period Step 5: [1] i) Sum the PV in steps 2 and 4 2

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