Question 8.A.4: Avalon plc has ordinary shares in issue that have a current ...

Financial Management for Decision Makers

Avalon plc has ordinary shares in issue that have a current market price of £1.50. The dividend expected for next year is 20p per share and future dividends are expected to grow at a constant rate of 3 per cent a year.

What is the cost of the ordinary shares to the business?

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