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Mark Watson is interested in buying shares in CBA Ltd. which is growing at a constant rate of 5 per cent. Last year, the company

Mark Watson is interested in buying shares in CBA Ltd. which is growing at a constant rate of 5 per cent. Last year, the company paid a dividend of $4.25. The required rate of return is 16 per cent.

a) What is the current price for this share?

b) What would be the price of the share in year 6?

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