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QUESTION 5 (5 marks) Interbet Ltd is a fast growing gaming company. The company projects a...

QUESTION 5 Interbet Ltd is a fast growing gaming company. The company projects a rapid growth of 30 percent for the next two years, then a growth rate of 17 percent for the following two years. After that, the company expects a constant growth rate of 8 percent. The company expects to pay its first dividend of $2.46 a year from now. If your required rate of return on such shares is 18 percent, what is the current price of the company’s shares?

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