question 9

A share is expected to pay a dividend of Shs 25/= in one years time. Thereafter, dividend growth is expected to be 4% per annum for two years and 2% per annum subsequently. If the market capitalization rate is 17% per annum, what is the value of the share?

Select one:

A. Shs 112.60

B. Shs 152.90

C. Shs 180.3.30

D. Shs 166.70