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hi sir,
can you correct my working on this question
beta plc is about to pay a div of.$0.40 per share. dividend are growing at the rate of 5% p.a. the sh’s required rate of return is 20%. the rate of corporate tax is 25%. what is the current market value per share?
my working:
using DGM formula
($0.4*1.05) / (0.2-0.05) = $2.8
answer is $3.20
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