Question
Richie Rich is interested in buying shares in Bueno VistaWines Ltd, which is growing at a constant rate of 8 percent per annum. Last year,
Richie Rich is interested in buying shares in Bueno VistaWines 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.
- What is the current price for this share? (5 marks)
- What would be the price of the share in year 5? (5 marks)
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Financial Times Guide To The Financial Markets
Authors: Glen Arnold
1st Edition
0273730002, 978-0273730002
