✅ The verified answer to this question is available below. Our community-reviewed solutions help you understand the material better.
Jasper has just bought a share in a company that is expected to start paying dividends at the end of next year. The expected dividend for the next four years are as follows: R12, R10, R6 and R3. You expect to sell the share for R45 at the end of a four-year period. What is the share currently worth, assuming a required return of 12%?