Estimate of the share price

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Question - It is anticipated that the dividend per share for Berwick plc next year will be 36p. Dividends are expected to continue to grow at the rate of 7 per cent per annum achieved over the last few years. The required rate of return on the shares is 15 per cent.

Provide an estimate of the share's price and how much does the expected rate of growth contribute to the share price in percentage terms?

Reference no: EM133036161

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