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Sohar Aluminium has the following dividend history: Year Dividend per Share Recently paid 25 bz Last year 19 bz Two years ago 18 bz Three

Sohar Aluminium has the following dividend history:

Year

Dividend per Share

Recently paid

25 bz

Last year

19 bz

Two years ago

18 bz

Three years ago

16 bz

Four years ago

14 bz

Five years ago

11 bz

The rate of return required on a share of this risk class is 15 per cent. Assuming that this dividend growth rate is unsustainable and Sohar will halve its historic rate in the future, what is the value of one share? (1.5+1.5 = 3 marks)

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