Question: DDY Ltd currently does not pay a dividend to its shareholders but equity analysts expect that the company will start paying a $2.00 dividend in

DDY Ltd currently does not pay a dividend to its shareholders but equity analysts expect that the company will start paying a $2.00 dividend in 3 years’ time. They expect this dividend to grow at an annual rate of 4% p.a. over the foreseeable future. If the required rate of return on DDY’s shares is 10% p.a. its share price today should be closest to?

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