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The last dividend paid to shareholders by Sigma Limited was $0.4 per share. Assume that the board of directors of the company plans to maintain
The last dividend paid to shareholders by Sigma Limited was $0.4 per share. Assume that the board of directors of the company plans to maintain a constant dividend growth policy of 2 per cent. An investor, in evaluating an investment in the company, has determined that he would require a 12 per cent rate of return from this type of investment. Calculate the price that the investor would be willing to pay for the shares.
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