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You have just bought a share in a company that is expected to start paying divi...
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You have just bought a share in a company that is expected to start paying dividends at the end of next year.
The expected dividends for the next three years are as follows:
Year
|
Dividend
|
1
|
R1,20
|
2
|
R1,89
|
3
|
R2,56
|
You expect to sell the share for R17,00 at the end of the three-year period. What is the share currently worth, assuming a required return of 13%?
0%
0%
0%
100%