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SLP Limited has a dividend policy to pay a constant dividend of $0.50 per share to its ordinary shareholders perpetually. Given the firms shareholders required

SLP Limited has a dividend policy to pay a constant dividend of $0.50 per share to its ordinary shareholders perpetually. Given the firms shareholders required rate of return of 10%, calculate the firms share price.

Question 16 options:

1)

$0.50

2)

$5.00

3)

$50.00

4)

None of the above.

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