Lovobalavu Limited pays a constant dividend of $0.60 cents per share. A fund manager is considering...

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Lovobalavu Limited pays a constant dividend of $0.60 cents per share. A fund manager is considering purchasing the shares as part of an investment portfolio. The fund manager requires a return of 15 per cent on the investment. Calculate the price that the funds manager would be willing to pay for the shares. 6The last dividend paid to shareholders by Damoda Centres was $0.10 per share. Assume that the board of directors of the company plans to maintain a constant dividend growth policy of 7.00 per cent. An investor, in evaluating an investment in the company, has determined that she would require a 12 per cent rate of return from this type of investment. If the current price of Vicinity shares in the stock market is $4.00, should the investor purchase the shares? (Show your calculations.) Lovobalavu Limited pays a constant dividend of $0.60 cents per share. A fund manager is considering purchasing the shares as part of an investment portfolio. The fund manager requires a return of 15 per cent on the investment. Calculate the price that the funds manager would be willing to pay for the shares. 6The last dividend paid to shareholders by Damoda Centres was $0.10 per share. Assume that the board of directors of the company plans to maintain a constant dividend growth policy of 7.00 per cent. An investor, in evaluating an investment in the company, has determined that she would require a 12 per cent rate of return from this type of investment. If the current price of Vicinity shares in the stock market is $4.00, should the investor purchase the shares? (Show your calculations.)

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