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The firm had paid dividend at AED 5 per share last year. The estimated growth of dividends from the company is estimated to be 8

The firm had paid dividend at AED 5 per share last year. The estimated growth of dividends from
the company is estimated to be 8% p a. Determine the estimated market price of the equity share if the
estimated growth rate of dividend (1) raises to 8%(2) falls to 3%. Also find out the present market price
of the share, given that the required rate of return of the equity investors is 18%

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