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Policorp Ltd is planning to reinvest earnings and not pay dividends until year 5, when a dividend of $8 is expected (D 5 = $8).
Policorp Ltd is planning to reinvest earnings and not pay dividends until year 5, when a dividend of $8 is expected (D5 = $8). D6 is expected to be $10 and then dividends are expected to grow at 2% pa forever after that. Calculate the current price of the share if the required return is 11%.
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