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Richie Rich is interested in buying shares in Bueno Vista Wines Ltd, which is growing at a constant rate of 8 percent per annum. Last

Richie Rich is interested in buying shares in Bueno Vista Wines Ltd, which is growing at a constant rate of 8 percent per annum. Last year, the company paid a dividend of $1.15. The required rate of return is 15.25 percent per annum.

a)What is the current price for this share? (5 marks)

b)What would be the price of the share in year 5? (5 marks)

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