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QUESTION 5 (8) The following information regarding the dividends of British American Tobacco Pic's share is forecasted: Assume British American Tobacco Pic's most recent dividend

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QUESTION 5 (8) The following information regarding the dividends of British American Tobacco Pic's share is forecasted: Assume British American Tobacco Pic's most recent dividend (Do) was R7.80 per share. Dividends are expected to grow by 12.26% annually over the next two years. At the end of the two years, the growth rate is expected to decline linearly for four years until a 4.85% annual growth rate is reached. At the end of year six, it is expected that the growth rate will remain constant at 3.91% (per year) ad infinitum. The firm's cost of capital is 9.55%. Calculate the fair (intrinsic) value of the share (report answer to two decimals)

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