Question
Mega Minings earnings and dividends have been growing at a rate of 7% per annum. This growth rate is expected to continue for 6 years
Mega Minings earnings and dividends have been growing at a rate of 7% per annum. This growth rate is expected to continue for 6 years (i.e. 2020 to 2025). After that, the growth rate will increase to 10% for the subsequent 5 years until 2030. Thereafter, the growth rate is expected to be consistent at 8% forever. If the last dividend per share was N$7.00 and the investors required rate of return on Mega Minings equity is 9%: Required: Compute the current value per share of Mega Mining from 2026 until 2030? Round off your final answer to the nearest whole number.
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