Determine the value of the company shares

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Lama Company has paid the following dividends over the past years

Year div per share

1.00
1.05
1.12
1.20
1.29
1.40

The average growth of dividends for the past five years is expected to persist in the foreseeable future. You are required to determine the value of the company's shares after payment of the dividend of 2004.

First find the average rate of growth in dividend over last five years.

Reference no: EM131114154

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