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Starz Ltd's dividends are expected to grow at a rate of 5% p.a. in the foreseeable future. Starz's current dividend is $1.00 per share and
Starz Ltd's dividends are expected to grow at a rate of 5% p.a. in the foreseeable future. Starz's current dividend is $1.00 per share and the required return on stocks like Starz is 10% p.a. Based on this information, Starz Ltd's share price today should be closest to:
A. $10.00.
B. $10.50.
C. $20.00.
D. $21.00.
Can you please show the calculations?
Thank you
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