price, the preference share or ordinary shares? LO 7.1 vJust paid $2 dividend. Which do you think Will have ge Questions and Problems: 1. Share Values: Du Faur Furnishings Ltd just have paid a dividend of $1.76 per share. The dividends are expected to growth at a constant rate of 3.6% pre year, indefinitely. In investors require a rate of return of 1 1 .7% on Du Faur Shares, what is the current price ? what will the price in four years? In ten years? LO 7.1 Ltd will e S1.35 per share. The growth rate of 4.2% forever. If one Memca share currently 2. Share Value: the next dividend payment by Merrica Coffee dividends are anticipated to maintain a sells for $23.70, what is the required rate of return? LO 7.1 Share Value: For the company in the previous problem, what is the dividend yield? What is the expected capital gains yield? LO 7.1 3. 5, Share Valuation: Pinchgut Foods is expected to maintain a constant 3.65% growth rate in its dividends indefinitely. If the company has a dividend yield of 7.5%, what is the required rate of return on the company shares? LO 7.1