Assume That for the Past 10 Years the Growth Rate

question 18

Multiple Choice

Assume that for the past 10 years the growth rate in A Ltd's dividends per share has been 10% p.a.Also assume that this growth rate is to be maintained indefinitely.The latest dividend of 90 cents was paid yesterday.What is the value of A's shares?

• A)$18.00
• B)$6.60
• C)$19.80
• D)$3.96

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Definitions:

Vestibule

An entrance hall or other open area in a building used by the public, especially a hotel or theater; in anatomy, it refers to the entrance of many structures in the body such as the mouth or ear.

Labia Minora

The inner folds of skin located at the entrance of the female genitalia, playing a role in protecting the vaginal and urethral openings.

Urethra

The duct through which urine is discharged from the bladder in both sexes and through which semen is discharged in males.

Ampulla

A dilated portion of a tube or canal, such as the widened end of the semicircular canals in the ear.