Question: Calculate the required return and the present value that you would place on each share. Furthermore, assume that Den's dividend has grown from $0.20 to

  1. Calculate the required return and the present value that you would place on each share. Furthermore, assume that Den's dividend has grown from $0.20 to $0.24 in the last 5-years and Zen's dividend has increased from $0.56 to $0.59 over the last 5-years. Omega's dividend has grown from $0.69 to $0.74 in the last 5-years. The last observed 10-year government bond yield was 3%. Justify the market risk premium you have used to calculate the required rate of return (Hint: you should be go online and search for market risk premium for the Australian share market). What documented concerns have been raised in regards to dividend valuation models? Please show all your detailed calculations in the report (not excel) when addressing this question.

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