A company has issued 6 million ordinary shares. The company has just paid a dividend of $2.2 million. That dividend is e

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answerhappygod
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A company has issued 6 million ordinary shares. The company has just paid a dividend of $2.2 million. That dividend is e

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A company has issued 6 million ordinary shares. The company has
just paid a dividend of $2.2 million. That dividend is expected to
grow at a rate of 24 percent per annum for the next three years,
then at a rate of 17 percent in the 4th year and at a rate of 4.56
percent per annum forever after that.
Assuming a required rate of return of 12.53 percent, calculate
the current market price of the share.
Explain the impacts of dividend growth rate in the share
valuation (Use max 200 words for the explanation in the
report).
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