Q5. Aspen Australia ltd is a fast growing company and expects to
grow at a constant rate of 6%. the company declared a dividend of
1.50 last year.
if the required rate of return on such shares is 12%
i. what is the current market value of this share?
ii. what is the expected dividends in year 4 and year 6?
iii. what is the price of the share 6 years from now?
Please refer to the image below for the solution
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