A company has paid the following dividends over the past years. Year Dividend per share 2008 1.10 2009 1.15 2010 1.16 2

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A company has paid the following dividends over the past
years.
Year
Dividend per share
2008
1.10
2009
1.15
2010
1.16
2011
1.20
2012
1.29
2013
1.40
The average growth of dividends is expected to be 10% in
foreseeable future. The required rate of return by the
investors is 15%. You are required to determine the
value of the company’s shares after payment of the dividend of
2013. (5 marks)
A company has paid the following dividends over the past
years.
Year
Dividend per share
2008
1.10
2009
1.15
2010
1.16
2011
1.20
2012
1.29
2013
1.40
The average growth of dividends is expected to be 10% in
foreseeable future. The required rate of return by the
investors is 15%. You are required to determine the
value of the company’s shares after payment of the dividend of
2013. (5 marks)