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Lily owns shares in Patina Constructions Pty Ltd . Currently, the market price of the share is $ 3 0 . 3 1 . The
Lily owns shares in Patina Constructions Pty Ltd Currently, the market price of the share is $ The company expects to grow at a constant rate of per cent for the foreseeable future. Its last dividend was worth $ Kaitlins required rate of return for such shares is per cent. She wants to find out whether she should sell her shares or add to her holdings.
a What is the maximum price that you would be willing to pay for this share? round to dp
b Based on your answer to part a should Lily buy additional shares in Patina Constructions? Why or why not?
c What is the share price in years if the growth rate increases to after years? round to dp
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