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PROBLEM 1: Making Distribution to shareholders Vasilis plcs cost of ordinary shares (15%) was estimated using the dividend growth model. A dividend has just been

PROBLEM 1: Making Distribution to shareholders

Vasilis plcs cost of ordinary shares (15%) was estimated using the dividend growth model. A dividend has just been paid (0.05 pence) and the share price of 0.61 pence is based on the assumption that this will increase at a fixed rate each year in the future. What growth rate has been assumed for the businesss ordinary share dividend?

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