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The company has issued 7 million ordinary shares. It has just paid a dividend of $3.1 million. That dividend is expected to grow at a

The company has issued 7 million ordinary shares. It has just paid a dividend of $3.1 million. That dividend is expected to grow at a rate of 25 percent per annum for the next three years, then at a rate of 14 percent in the 4th year and at a rate of 5.19 percent per annum forever after that.

Assuming a required rate of return of 15.75 percent, calculate the current market price of the share.

Explain the difficulties of calculating the intrinsic value of the share (Use a max of 200 words for the explanation).

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