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Question 3 [10 Marks) Coller Tools has recently declared a dividend, D., of R1 per share Analysts and investors expect Coller to increase its dividends

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Question 3 [10 Marks) Coller Tools has recently declared a dividend, D., of R1 per share Analysts and investors expect Coller to increase its dividends at a 10 percent rate for each of the next 2 years The annual dividend growth rate is expected to decline to 8 percent for year 3 and 4 and then to settle down to 4 percent per year forever The required return for investing in Coller Tools is 16% Required. 31 Determine the fair price for Coller Tools

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