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QUESTION 8: Assume that for the past 10 years the growth rate in A Ltd's dividends per share has been 10% p.a. Also assume that

QUESTION 8:

Assume that for the past 10 years the growth rate in A Ltd's dividends per share has been 10% p.a. Also assume that this growth rate is to be maintained indefinitely. The latest dividend of 90 cents was paid yesterday. What is the value of A's shares?

a.$18.00

b.$6.60

c.$19.80

d.$3.96

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