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

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?

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