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Monash Co. pays dividends annualy and has a current dividend of $7 per share. It is expected to grow at a rate of 25% per
Monash Co. pays dividends annualy and has a current dividend of $7 per share. It is expected to grow at a rate of 25% per annum for the next 2 years, 20% for the following 3 years, after which dividends stop growing. Dividends are still paid into perpetuity after the growth period. The company has a required rate of return of 12%, calculate the current implied price of the share.
a)
$123.89
b)
$153.98
c)
$198.35
d)
$135.98
e)
$189.53
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