REQUIRED

Use the Dividend Growth Model to estimate the cost of the ordinary shares $($expressed as a percentage to two decimal places$)$ from the information provided below.

$(4$ marks$)$

INFORMATION

The present value of a Torga Limited ordinary share is R$50,$ the dividend at the end of the previous year was R$8$ and the expected growth rate in dividends is $10\%$ p$.$a$.$