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Sweets limited has just paid a cash dividend of $ 5 per share. The required rate of return is 1 5 % if the dividend

Sweets limited has just paid a cash dividend of $

5

per share. The required rate of return is

15 %

if the dividend is expected to grow at a constant rate of

10 %

per annum. Calculate the current price of the stock? What will be the stock price six years from now?

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