Question: Question 2 1.5 pts You are trying to value a share in a new construction company. The company only pays one dividend per year. You

 Question 2 1.5 pts You are trying to value a share

Question 2 1.5 pts You are trying to value a share in a new construction company. The company only pays one dividend per year. You expect the company to be able to pay its first annual dividend of $1.00 in year 7 and for that dividend to grow at 10%pa compounded annually for 4 years. After that the dividend is expected to grow at 4%pa compounded annually forever. Shareholders require a return of 16%pa compounded annually. How much is the share worth today? Your answer must be in DOLLARS with TWO (2) decimal places. For example, $10.55 would be entered as 10.55 There is 0.05 margin of error which means within a range of 0.05 of the correct answer will be accepted. So in this case answers of 10.50 through to 10.60 will be marked correct

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