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CEPS Group announced today that it will begin paying annual dividends next year. The first dividend...

CEPS Group announced today that it will begin paying annual dividends next year. The first dividend will be OMR 0.65 a share. The following dividends will be OMR 0.72, OMR 0.85, OMR 0.89, and OMR 0.95 a share annually for the following 4 years, respectively. After that, dividends are projected to increase by 4 percent per year. How much are you willing to pay to buy one share of this stock today if your desired rate of return is 11.5 percent?  show the answer in detail.
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Answer #1

Based on the given data, pls find below:

Based on the workings, The share can be bought at OMR 10.55 as at today.

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