Question: An analyst estimates that the Seraphim Company will be able to increase its dividends at a 2.5 per cent rate indefinitely. The current annual dividend

An analyst estimates that the Seraphim Company will be able to increase its dividends at a 2.5 per cent rate indefinitely. The current annual dividend (just paid) is $3, and the required rate of return is 12 per cent. What is the value of a share using the dividend growth model?

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