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You have invested in Huawei Ltd whose dividend per share has grown 10% per annum for the past 10 years. Assume that Huaweis growth rate
You have invested in Huawei Ltd whose dividend per share has grown 10% per annum for the past 10 years. Assume that Huaweis growth rate is expected to be maintained indefinitely. The latest dividend per share was 90 cents was yesterday. If your required rate of return is 15 per cent, what is the value of Huaweis shares? [5 marks]
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