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Section C (4 Mark)The required rate of return on an investment is 12%, you estimate...

Section C (4 Mark)

The required rate of return on an investment is 12%, you estimate that a firm X’s dividend will grow as follows:

For the subsequent years you expect the dividend to grow at the more modest rate of 7% annually. What is the maximum price that you should pay for this stock?

A.

Rs. 67.25

B.

Rs. 67.83

C.

Rs. 65.45

D.

Rs. 68.86

AAFM CWM_LEVEL_2 Summary

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