Estimate the current market price of the share

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Reference no: EM131579238

It is anticipated that Company XYZ will pay a dividend of $4.75 one year from now and a dividend of $5.0 one year following, after which dividends are expected to grow at the rate of 5% per annum indefinitely. If this information is communicated to the market, and the market’s required rate of return is 15%, estimate the current market price of the share.

Reference no: EM131579238

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