A share is expected to pay a dividend of Shs 30/= in one years’ time. Thereafter, dividend growth is expected to be 5% per annum for two years and 2% per annum subsequently. If the market capitalization rate is 16% per annum, what is the value of the share?

Select one:

A. Shs 236.30

B. Shs 200.60

C. Shs 151.40

D. Shs 214.30

Answer rating: 100% (QA)

Dividend in 1 year Shs 30 Dividend growth for next 2 ... View the full answer