Question 10.3: XYZ’s current cum dividend share price is £3.45 and the comp...

Corporate Finance Principles and Practice [693350]

XYZ’s current cum dividend share price is £3.45 and the company has just announced a dividend per share of 20p. At what rate do investors expect dividends to grow in the future if the current share price is considered to be fair and if shareholders require a rate of return of 15 per cent?

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