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QUESTION FIVE A. Last year company XYZ paid a dividend of K2. Dividend is expected to grow at 1o8 a rate of 5% in year

QUESTION FIVE A. Last year company XYZ paid a dividend of K2. Dividend is expected to grow at 1o8 a rate of 5% in year one, 4% in year and 6% thereafter indefinitely. Find the value today of a share of company XYZ if the stated rate is 12%. (10 Marks)

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