Question: Melbourne Ltd is now on a fast-growth phase and expects its dividends to grow at a rate of 15 per cent for the next 4

Melbourne Ltd is now on a fast-growth phase and expects its dividends to grow at a rate of 15 per cent for the next 4 years. The dividends will then settle to a constant-growth rate of 5 per cent. The current dividend was just paid at $3. If the required rate of return is 10 per cent, what is the value of the share?

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