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SA Fine Tuning has just paid a dividend of N$1. 20 per share. The required rate ...
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SA Fine Tuning has just paid a dividend of N$1. 20 per share. The required rate of return on equity is 22%. The future dividends are expected to be as follows, with the growth rate for year 3 being in perpetuity thereafter:
Year | 0 | 1 | 2 | 3 |
DPS (N$) | 1.20 | 1.44 | 1.73 | 1.91 |
Growth Rate |
| 20% | 20% | 10% |
The value of an ordinary share today is:
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