Question: Question 2 [8 Marks] Exxon Mobile expects its earnings and dividends to increase by 7 percent per year over the next 6 years and then

Question 2 [8 Marks] Exxon Mobile expects its earnings and dividendsto increase by 7 percent per year over the next 6 years

Question 2 [8 Marks] Exxon Mobile expects its earnings and dividends to increase by 7 percent per year over the next 6 years and then to remain constant thereafter The Company currently pays dividends of R5 per share Required: Determine the value of a share of Exxon Mobile to an investor with a 12 percent required rate of return [8 Marks] Question 1 Consider an investment with the following year-end cash flows End of Year Cash Flow R20 R30 R15 Required: Using a 15 percent interest rate, convert this series of irregular cash flows to an equivalent (in present value terms) 3-year annuity

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