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Peter North is interested in buying shares in Lynas Ltd. which is growing at a constant rate of 4 per cent. Lynas Ltd. just paid

Peter North is interested in buying shares in Lynas Ltd. which is growing at a constant rate of 4 per cent. Lynas Ltd. just paid a dividend of $1.75. The required rate of return is 11 per cent.

(a) What is the current price for this share?

(b) What would be the price of this share in three years?

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