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Othercell Motor Company just paid a dividend of 1.40. Analysts expect its dividend to grow at a rate of ten percent next year, eight percent
Othercell Motor Company just paid a dividend of 1.40. Analysts expect its dividend to grow at a rate of ten percent next year, eight percent for the following two years, and then a constant rate of five percent thereafter. Required rate of return is twelve percent. Estimate the current value of Othercell shares. [10 marks]
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