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Show me the steps to solve PIN Ltd is a firm that has been underperforming for many years and has just had a change in
Show me the steps to solve
PIN Ltd is a firm that has been underperforming for many years and has just had a change in management. The
new management team have just made an announcement that they will pay a dividend today of $ and they
expect that in the future this annual dividend will grow at a constant rate of per annum. The required rate of
return for PIN Ltd shares is per annum. Which of the following is closest to the current value of PIN Ltd
shares? note you have not yet received todays dividend
a $
b $
c $
d $
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