question archive Jim Ltd

Jim Ltd

Subject:AccountingPrice: Bought3

Jim Ltd.'s next dividend will be $4, the dividend is expected to grow at 7% p.a., for the following 3 years. After that the growth rate in dividends will be 5% per year indefinitely. Required rate of return is 10% p.a.

Required:

Calculate the current value of Jim Ltd.'s shares.

 

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