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The last dividend paid by Buyrite Ltd was $1.00. Buyrites growth rate is expected to be 5 percent p.a. for 2 years, after which dividends
The last dividend paid by Buyrite Ltd was $1.00. Buyrites growth rate is expected to be 5 percent p.a. for 2 years, after which dividends are expected to grow at a rate of 10 percent p.a. forever. Buyrites required rate of return on equity is 12 percent. What is the current price of Buyrites shares? a) $33.33 b) $42.25 c) $50.16 d) $58.75
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