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The required rate of return on the shares in the companies identified below is 10%pa. Calculate the current share price (ex-dividend). Gamma Ltd is planning
The required rate of return on the shares in the companies identified below is 10%pa. Calculate the current share price (ex-dividend).
Gamma Ltd is planning to reinvest earnings and not pay dividends until year 10, when a divide of $8 is expected (D10=$8). Dividends are expected to grow at 3.25% pa forever after that. (Accurate to the nearest cent).
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