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The most recent annual dividend paid by Spire Ltd is sh.3.00. An annual increase of 10% is expected over the first three years. A growth
The most recent annual dividend paid by Spire Ltd is sh.3.00. An annual increase of 10% is expected over the first three years. A growth rate of 8% is then expected in the next two years and thereafter the dividend growth rate would slow down to 5% indefinitely. Required: Assuming 15% required rate of return, compute the current value of a share of Spire Ltd (10 marks)
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