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lan purchased shares of Fairy Wigs Pty at a price of $15.75 per share exactly one year ago. The company just paid a total of
lan purchased shares of Fairy Wigs Pty at a price of $15.75 per share exactly one year ago. The company just paid a total of $1.35 in dividends per share and next year's dividend will be paid out in one year's time. What price should the share of Fairy Wigs be sold at today if the annual dividends are expected to remain constant perpetually and the appropriate discount rate of Fairy Wig's shares is 7.5% p.a.? a. None of the options is correct b. $15.75 c. $16.35 d. $13.20 e. $18.00
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