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The share price of Mars is currently $4.55 per share and the last dividend was $0.40 per share. The analyst is predicting an annual dividend

The share price of Mars is currently $4.55 per share and the last dividend was $0.40 per share. The analyst is predicting an annual dividend growth rate of 5% and the required rate of return is 16%. Required:

a) Compute the share price using the Gordon Growth model.

b) Comment on whether you would invest in the share.

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