Can you please help me with the 14th mcq? Thanx
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Specimen paper
11y ago#1Average growth is (cube root of 36/31.1) - 1 = 0.05 (or 5%)
Re is 12%
Do is 36
So using the dividend growth model gives (36(1.05))/(0.12-0.05) = 540 (or $5.40 per share)
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