Question 21 - Non-constant growth Serxenty Organic Wines Pty Ltd will pay dividends of $5.00, $6.25, $4.75 and $3.00 for the next 4 years. Thereafter, the company expects its growth rate to be a constant rate of 6 per cent. If the required rate of return is 18.5 per cent, what is the current market price of the share? Question 30 Comwin Pty Ltd is expanding very fast and expects to grow at a rate of 25 per cent for the next 4 years. The company recently declared a dividend of $3.60 but does not expect to pay any dividends for the next 3 years. In year 4, it intends to pay a $5 dividend and thereafter grow it at a constant rate of 6 per cent. The required rate of return on such shares is 20 per cent. Question a Calculate the present value of the dividends during the fast growth period. Question b What is the price of the share of the end of the fast grow period (P4)? Questionc What is the share price today? Question d Would today's share price be dinner driven by the length of time you intend to hold the share