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Chelseao plc pays dividends that are expected to grow at 5% each year. Dividends will stop growing at the end of year 5, at which point the firm will pay out all its earnings as dividends. The next

Chelseao plc pays dividends that are expected to grow at 5% each year. Dividends will stop growing at the end of year 5, at which point the firm will pay out all its earnings as dividends. The next dividend will be paid one year from now at £10 and its earning per share (EPS) at the time will be £15. If the appropriate discount rate on Chelseao plc. is 8%, what is its fair market price of the share today? 

Apr 14 2021 View more View Less

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